There are over one million fewer jobs in Britain than in 1990.

One in five families has no one working. One million single mothers are trapped on benefits. There is a wider gap between rich and poor than for generations.

We are determined not to continue down the road of a permanent have-not class, unemployed and disaffected from society. Our long-term objective is high and stable levels of employment. This is the true meaning of a stakeholder economy - where everyone has a stake in society and owes responsibilities to it.

The best way to tackle poverty is to help people into jobs - real jobs. The unemployed have a responsibility to take up the opportunity of training places or work, but these must be real opportunities. The government's workfare proposals - with a success rate of one in ten - fail this test.

Labour's welfare-to-work programme will attack unemployment and break the spiral of escalating spending on social security. A one-off windfall levy on the excess profits of the privatised utilities will fund our ambitious programme.

Every young person unemployed for more than six months in a job or training

We will give 250,000 under-25s opportunities for work, education and training. Four options will be on offer, each involving day-release education or training leading to a qualification:

- private-sector job: employers will be offered a £60-a-week rebate for six months

- work with a non-profit voluntary sector employer, paying a weekly wage, equivalent to benefit plus a fixed sum for six months

- full-time study for young people without qualifications on an approved course

- a job with the environment taskforce, linked to Labour's citizens' service programme.

Rights and responsibilities must go hand in hand, without a fifth option of life on full benefit.

Every 16 and 17 year-old on the road to a proper qualification by the year 2000

Nearly a third of young people do not achieve an NVQ level two qualification by age 19. All young people will be offered part-time or full-time education after the age of 16. Any under-18 year-old in a job will have the right to study on an approved course for qualifications at college. We will replace the failed Youth Training scheme with our new Target 2000 programme, offering young people high-quality education and training.

Action on long-term unemployment

New partnerships between government and business, fully involving local authorities and the voluntary sector, will attack long-term joblessness. We will encourage employers to take on those who have suffered unemployment for more than two years with a £75-a-week tax rebate paid for six months, financed by the windfall levy. Our programme for the phased release of past receipts from council house sales will provide new jobs in the construction industry.

Lone parents into work

Today the main connection between unemployed lone parents and the state is their benefits. Most lone parents want to work, but are given no help to find it. New Labour has a positive policy. Once the youngest child is in the second term of full-time school, lone parents will be offered advice by a proactive Employment Service to develop a package of job search, training and after-school care to help them off benefit.

Customised, personalised services

We favour initiatives with new combinations of available benefits to suit individual circumstances. In new and innovative 'Employment Zones', personal job accounts will combine money currently available for benefits and training, to offer the unemployed new options - leading to work and independence. We will co-ordinate benefits, employment and career services, and utilise new technology to improve their quality and efficiency.

Fraud

Just as we owe it to the taxpayer to crack down on tax avoidance, so we must crack down on dishonesty in the benefit system. We will start with a clampdown on Housing Benefit fraud, estimated to cost £2 billion a year, and will maintain action against benefit fraud of all kinds.