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Labour pledge 'jobs guarantee' for long-term unemployed Labour pledges 'jobs guarantee' for long-term unemployed
(about 2 hours later)
Labour say they will guarantee a job for the long-term unemployed, if they are re-elected. The Labour Party says it will guarantee a job for the long-term unemployed, if it is re-elected.
They say they would spend £1bn to enable employers to meet the cost of hiring the 130,000 people who have been out of work for more than two-years. Shadow chancellor Ed Balls said the scheme would be paid for by restricting the tax relief on pensions for those earning over £150,000 a year,
The shadow chancellor Ed Balls says the scheme could be paid for by restricting the tax relief on pensions for those earning over £150,000 a year. The party has pledged £1bn to enable employers to meet the cost of hiring the 130,000 people who have been out of work for more than two-years.
But the Treasury says Labour is trying to spend the same money twice.But the Treasury says Labour is trying to spend the same money twice.
It says Mr Balls had already earmarked cuts in pension tax relief to reverse austerity measures.It says Mr Balls had already earmarked cuts in pension tax relief to reverse austerity measures.
Under Labour's plan, the long-term unemployed would be offered 25 hours of work a week, at the national minimum wage, for six months. Under Labour's plan, the long-term unemployed would be offered 25 hours of work a week at the national minimum wage for six months.
Anyone who did not accept the offer of a suitable post would have their benefits reduced as a consequence. Those who did not accept the offer of a suitable job faced having their benefits cut.
The scheme expands its existing jobs guarantee proposal which has up to now only covered 16-24 year old job-seekers. The scheme expands Labour's existing jobs guarantee proposal which has up to now only covered 16-24 year old job-seekers.
The opposition said 129,400 people would currently be helped by the plan, which would be entirely paid for by limiting tax relief on pension contributions made by the 2% of UK earners with incomes of more than £150,000 a year. Mr Balls said 129,400 people would currently be helped by the plan, which would be entirely paid for by limiting tax relief on pension contributions made by the 2% of UK earners with incomes of more than £150,000 a year.
But the government says their back-to-work plans is already helping hundreds of thousands of people leave the dole queues. But the government says its back-to-work plans are already helping hundreds of thousands of people get jobs.
The BBC's political correspondent Iain Watson said: "Next week, Labour will vote against government proposals to cap the rise in most benefits to just 1%.The BBC's political correspondent Iain Watson said: "Next week, Labour will vote against government proposals to cap the rise in most benefits to just 1%.
"So they're keen not to be seen as 'soft on scroungers' and to show they have their own solution to bringing down the benefits bill," he added.
While the headline rate of unemployment has fallen in the each of the last seven months, Labour says the number of long-term jobless is 88% - higher than it was a year ago and nearly 150% higher than at the same time in 2010.
'Tough and fair''Tough and fair'
"So they're keen not to be seen as 'soft on scroungers' and to show they have their own solution to bringing down the benefits bill."
While the headline rate of unemployment has fallen in the each of the last seven months, Labour says the number of long-term jobless is more than it was a year ago and nearly 150% higher than at the same time in 2010.
Mr Balls' proposal would see subsidies for six-month placements in the private or voluntary sector, enabling firms and charities to take on staff on a temporary basis.Mr Balls' proposal would see subsidies for six-month placements in the private or voluntary sector, enabling firms and charities to take on staff on a temporary basis.
At the end of the six months, all those involved would have to find a permanent job or revert to claiming jobseeker's allowance. At the end of the six months, workers would have to find a permanent job or revert to claiming jobseeker's allowance.
The £1bn cost of the scheme - which, if ever implemented, Labour hope would eventually be extended to those out of work for 18 months or a year - would be funded by introducing a 20% limit on tax relief on pension contributions for those earning £150,000 a year or more. The £1bn cost of the scheme - which Labour hope could eventually be extended to those out of work for 18 months or a year - would be funded by introducing a 20% limit on tax relief on pension contributions for those earning £150,000 a year or more.
Chancellor George Osborne announced plans in last month's Autumn Statement to reduce the annual tax relief on pension contributions from £50,000 to £40,000 and lower the amount of relief anyone is entitled to in their lifetime from £1.5m to £1.25m.Chancellor George Osborne announced plans in last month's Autumn Statement to reduce the annual tax relief on pension contributions from £50,000 to £40,000 and lower the amount of relief anyone is entitled to in their lifetime from £1.5m to £1.25m.
But Labour said the 50% limit on tax relief on pensions for the highest earners should be brought into line with that for basic rate taxpayers, arguing it "cannot be right" that the top 2% of earners received more than twice the level of tax relief on their contributions.But Labour said the 50% limit on tax relief on pensions for the highest earners should be brought into line with that for basic rate taxpayers, arguing it "cannot be right" that the top 2% of earners received more than twice the level of tax relief on their contributions.
The tax proposal is similar to one announced by Labour in 2009.The tax proposal is similar to one announced by Labour in 2009.
Labour has said ministers' flagship Work Programme has proved "lamentable" and that the government would not achieve its goal of reducing welfare bills if thousands of people were out of work for prolonged periods, Mr Balls said. Labour has said ministers' flagship Work Programme has proved "lamentable" and that the government would not achieve its goal of reducing welfare bills if thousands of people were out of work for prolonged periods.
"A One Nation approach to welfare reform means government has a responsibility to help people into work and support those who cannot. 'One Nation approach'
Mr Balls said: "A One Nation approach to welfare reform means government has a responsibility to help people into work and support those who cannot.
"But those who can work must be required to take up jobs or lose benefits as a result - no ifs nor buts. Britain needs real welfare reform that it tough, fair and that works.""But those who can work must be required to take up jobs or lose benefits as a result - no ifs nor buts. Britain needs real welfare reform that it tough, fair and that works."
'On track'
MPs are preparing to return to Westminster after the Christmas and New Year recess on Monday and ahead of a debate over government plans to introduce a 1% cap on the rise working-age benefits over the next three years.
Labour is opposing this move, which would end the practice of increasing benefits in line with inflation, arguing that it will further penalise people on modest incomes already affected by cuts to tax credits and caps on certain benefits.
Ministers say the Work Programme, in which firms and charities are paid to help find jobs for the long-term unemployed, is "on track" despite opposition criticism.Ministers say the Work Programme, in which firms and charities are paid to help find jobs for the long-term unemployed, is "on track" despite opposition criticism.
Figures published in November showed only 3.53% of people on the scheme found a job for six months or more - against a coalition target of 5.5%.Figures published in November showed only 3.53% of people on the scheme found a job for six months or more - against a coalition target of 5.5%.
But the government insists progress is being made and that nearly 10% of the initial participants have got into work and stayed there for six months, while 50% of those who have taken part have come off benefits.But the government insists progress is being made and that nearly 10% of the initial participants have got into work and stayed there for six months, while 50% of those who have taken part have come off benefits.