Labour's welfare reform: No arbitrary benefit cut targets, focus on youth employment
Labour vows no arbitrary benefit cut targets in reform

Labour's Work and Pensions Secretary has announced a significant shift in welfare policy, vowing there will be no arbitrary benefit cut targets in future reforms.

New approach to welfare

In an exclusive statement during a visit to Peterborough's new youth employment hub, Pat McFadden revealed his department would focus on creating work opportunities rather than pursuing savings through benefit reductions.

The cabinet minister's comments come after the government was forced to abandon planned cuts to personal independence payments (PIP) and changes to Universal Credit health top-ups during the summer following a backbench rebellion.

Youth employment at the heart

Speaking at the youth employment hub located within Peterborough United's Weston Homes Stadium, Mr McFadden emphasised: "I think welfare reform, when it happens, should be firmly focused on working opportunity and not an arbitrary benefit cut target."

The minister declined to criticise his predecessor Liz Kendall directly, stating: "What's done is done. I don't want to look in the rearview mirror. But I want the welfare state to be a springboard for opportunity."

Expanding youth support

The government plans to significantly expand its network of youth employment hubs, aiming to increase their number from approximately 100 to 200 across the country.

These centres provide comprehensive support for young jobseekers, offering not only employment advice but also assistance with housing, health issues, and financial guidance.

Mr McFadden explained the advantage of these hubs over traditional Jobcentres: "They don't always want to do this in a Jobcentre. And in a Jobcentre you can't always find the other help that people need - with health issues or housing issues or money advice and so on."

The initiative forms part of Chancellor Rachel Reeves' youth guarantee, which promises paid work placements for those out of work or education for 18 months.

Mr McFadden expressed concern about young people becoming trapped in the benefits system, stating: "It's been too easy for people to graduate from education onto being trapped on benefits and I don't want that. The other thing about these benefits is they can be sticky."

The Peterborough hub received cross-party support, with the city's mayor, former Tory MP Paul Bristow, endorsing the initiative. Mr Bristow noted that the football stadium location provided a much more welcoming environment than traditional Jobcentres.

The English Football League's director of community, Debbie Cook, welcomed the partnership, highlighting how football clubs are deeply embedded in their communities and well-positioned to help young people unlock their potential.