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Labour pledges jobs guarantee 'throughout next Parliament'
Labour's flagship jobs guarantee would be in place throughout the next Parliament, paid for by a bankers' bonus tax and a squeeze on high-earners' pension pots, the party said.
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Labour target 'jobs guarantee' at under-25s
The Labour jobs guarantee will focus on youth unemployment, the Shadow Secretary for Work and Pensions told Daybreak.
Rachel Reeves said the jobs guarantee will force under-25s who have been out of a year into a minimum wage job, but will only do the same for over 25s after two years on jobseekers allowance.
"We know that there are particular problems with youth unemployment. 20% of young people are out of work - much higher than for the population as a whole.
"And for young people what we hear time and again from them and from businesses, is that there is quite a risk - they haven't worked before.
"But that is not quite the same for older people, which is why we are targeting this scheme at younger people."
Govt: Labour has 'no economic plan'
Labour have "no economic plan" and would put the economy at risk with their jobs guarantee, a treasury minister has said.
Financial Secretary to the Treasury Sajid Javid explained:
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How Labour's flagship jobs pledge would work
- Under-25s living off Jobseeker's Allowance for over a year, would have to chose between a taxpayer-subsidised job for six months or lose their benefits.
- Employment will be provided by firms and voluntary sector groups for 25 hours' every week, for six months and the national minimum wage.
- The Government will pay the wages and employers' National Insurance.
- Another £500 per employee would be supplied towards training - which would be compulsory for participants - and administration costs.
- Labour said only firms that could show they were not using the scheme to replace existing workers or reduce their hours would qualify for funding.
Labour extend jobs guarantee to five years
Labour's promise to introduce measures to get the long-term unemployed and under-25s into work would last throughout the next Parliament, the party said.
Ed Miliband's party will promise to fund the package via a tax on bankers' bonuses and high-earners' pensions in its 2015 manifesto.
Last month the party confirmed reports that funding - also including the proceeds of restricting pension tax relief for high earners - was only in place for 2015/16.
Now it says the scheme - estimated on present claimant levels to cost £1.9 billion in its first year and £900 million a year thereafter - is affordable right through to 2020.
Under the scheme, under-25s on Jobseeker's Allowance for more than a year - two years for others - would have to take a taxpayer-subsidised job for six months or risk losing benefits.