IPPR: Sunak’s job support reforms will still leave people struggling this winter

Think tank welcomes reforms but warns that many will still miss out on support and the social safety net is not generous enough

The progressive think tank IPPR has responded to the reforms to the Job Support Scheme announced by the Chancellor today. The think tank previously criticised the Chancellor’s Job Support Scheme for only supporting 230,000 jobs and jeopardising 1.8 million viable jobs when the furlough scheme ends.

Reacting to the Chancellor’s Job Support Scheme reforms, Carys Roberts, IPPR Executive Director, 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.”

On incomes

“The support packages will leave many individuals and families with much lower incomes than before, particularly the self-employed, and universal credit is not generous enough to plug this gap. Fixing this would address a huge social challenge but also help stabilise the economy during the recovery.”

On eligibility

“The 20 per cent of hours requirement will mean that some businesses really struggling - for instance suppliers to shut down businesses - will not be able to participate in the scheme, and job losses will follow.”

On cracks in the system

“Others will miss out entirely on support and will be relying on inadequate welfare payments. This includes 280,000 low-income workers in viable jobs where the scheme doesn’t offer employers sufficient incentives to keep them on, and the recently self-employed.”

On social security

“Cuts to incomes and unemployment will leave people really struggling this winter and reduce spending across the economy at a time when it’s desperately needed. The Chancellor must fix universal credit to be fit for the difficult times ahead.”

ENDS

CONTACT

Robin Harvey, Digital and Media Officer: 07779 204798 r.harvey@ippr.org

David Wastell, Head of News and Communications: 07921 403651 d.wastell@ippr.org

NOTES TO EDITORS

1. The IPPR paper, The Narrow Corridor by Carsten Jung and Henry Parkes sets out the flaws in the original Job Support Scheme and is available for download at: http://www.ippr.org/research/publications/the-narrow-corridor
2. In August IPPR published its proposals for a Job Retention Scheme replacement based on short-time working principles – a Coronavirus work-sharing scheme. The report by Clare McNeil, Carsten Jung and Dean Hochlaf is available to download here: https://www.ippr.org/research/publications/rescue-and-recovery
3. IPPR is the UK’s pre-eminent progressive think tank. With more than 40 staff in offices in London, Manchester, Newcastle and Edinburgh, IPPR is Britain’s only national think tank with a truly national presence. www.ippr.org