Government’s ‘final hour’ strengthening of COVID-19 job support package will still leave people struggling this winter

IPPR warns that inadequate welfare payments and continued lack of employer incentives to keep low paid jobs open will leave too many families ‘in the cold’

The government’s 'final hour' announcement of measures that strengthen the government’s coronavirus (COVID-19) job support package will still leave people struggling this winter, the Institute for Public Policy Research (IPPR) has said.

While the IPPR welcomes the Chancellor Rishi Sunak's job support reforms announced yesterday, it highlights that there are fundamental weaknesses in the timing and generosity of the new support measures that need addressing -

• incomes - the support package is not generous enough for many individuals and families left with much lower incomes than before, particularly the self-employed, and those on universal credit - fixing this would address a huge social challenge but also help stabilise the economy during the recovery;
• eligibility - the 20 per cent of hours requirement to become eligible under the new job support scheme rules will mean that some businesses that are really struggling, such as suppliers to shut down businesses, will not be able to participate in the scheme, leading to job losses;
• cracks in the system - many people will miss out entirely on support and have to rely on inadequate welfare payments - including 280,000 low-income workers in viable jobs where the scheme doesn’t offer employers sufficient incentives to keep them on; and
• social security - changes to universal credit are needed to make it fit for the difficult times ahead, as cuts to incomes and unemployment will leave people struggling this winter and reduce spending across the economy at a time when it’s desperately needed.

Commenting on the Chancellor's reformed job support package, IPPR Executive Director Carys Roberts said -

‘The Chancellor has at the final hour heeded calls to avert 1.8 million viable jobs being lost, by strengthening the Job Support Scheme. But he can’t keep letting predictable events overtake him. His Winter Economy Plan still leaves too many families in the cold, and he now urgently needs to fix the broken social safety net to help people and stabilise the economy through the winter.’

For more information, see Sunak’s job support reforms will still leave people struggling this winter from ippr.org