Labour leader, ED Miliband has backed the key policy to tackle youth unemployment and indicated that it will extend benefit to the while of the UK.

The leader is planning to pay for the policy through a combination of a bank bonus tax and a cut on the pension funds. The Labour Party has said that it is planning to cut pensions tax relief for all those earning more than £150,000in order to be able to raise funds for the Compulsory Jobs Guarantee, a key part of the welfare plan.

Media reports showed that the people earning more than £150,000 would only get 20 per cent tax relief on their pension contributions compared to 45 per cent given to them under the current regulations. The party has indicated that it would raise some of the money necessary for its welfare reform by cutting the relief. Miliband has said that the measures will allow the government to raise funds to pay for the £5.5 billion plan.

Mr Miliband said: "We can't have a recovery that's just for a few banks. We've got 56,000 young people who have been unemployed for over 12 months. A Labour government will tax the bankers' bonuses and put our young people back to work."