Labour accused of ‘subsidising jobs’ in favour of cutting high taxes on businesses

Shadow work and pensions secretary Helen Whately accused Labour of subsidising jobs instead of reducing taxes and costs for businesses. She said employers she spoke to wanted to hire young people but found it too expensive and risky, and claimed there are 200,000 fewer jobs under the Government.

The Government is expanding its taxpayer-funded Jobs Guarantee scheme to 18 to 24-year-olds who have claimed Universal Credit for 12 months, offering each eligible person a fully funded six-month job matched to their skills. It is due to begin at the end of this month and aims to help more than 90,000 young people into work by March 2029. A review led by Alan Milburn is expected next week and may recommend removing benefits from people who can work but refuse to do so.