Firm and Fair Policy – Compulsory Jobs Guarantee

Mike Le-Surf with Ed Balls MP

The rise in youth unemployment under this Tory-led coalition is one of the real scandals of this current government and is affecting many residents in South Basildon and East Thurrock.
Tory and Lib Dems claims that the economy is recovering are built on deceit and delusion. The reality is that our current economy is one of uncertainty and insecurity for many thousands of people. Zero hours contract work helps to cook the books and keep the real figures down. The future for residents of South Basildon and East Thurrock has to be built of stronger stuff. I am campaigning for a level playing field for all. Training and apprenticeships are a vital part of this and I am delighted that Labour has made the concrete pledge to the electorate for a compulsory jobs guarantee.
The Compulsory Jobs Guarantee will be in Labour's general election manifesto next year and will be funded for the whole of the next parliament. 18 to 24-year-olds who have been out of work for a year will be offered a job lasting six months paid for by taxing bank bonuses and changing tax rules for the pensions of high earners.
25 hours work a week on the minimum wage will be provided and the employer will have to guarantee compulsory training. Life on welfare will no longer be an option. The opportunity for training in employment will become a reality.
Ed Balls speech today states:
"It's shocking that the number of young people stuck on the dole for more than a year has doubled under David Cameron. For tens of thousands of young people who cannot find work this is no recovery at all. We've got to put this right. So if Labour wins the next election we will get young people and the long-term unemployed off benefits and into work. The government will work with employers to help fund paid work with training for six months. It will mean paid starter jobs for over 50,000 young people who have been left on the dole for over a year by this government. But it will be a tough contract - those who can work will be required to take up the jobs on offer or lose their benefits. A life on benefits will simply not be an option."
The Compulsory Jobs Guarantee will also apply to adults aged 25 or over claiming Jobseeker's Allowance for two years or more.
Funding for the scheme will come from repeating Labour's 2009-10 tax on bank bonuses at the start of the next parliament plus restrictions on pensions tax relief for people earning more than £150,000 to the same rate as basic-rate taxpayers.