As furloughs and Universal Credit uplifts come to an end, Britons will see a “substantial loss in income.”
After the Government’s furlough scheme and £20 per week augmentation to Universal Credit expires later this month, Britons would suffer a “substantial decrease in income.” The furlough scheme, formally known as the Coronavirus Job Retention Scheme, is due to conclude on September 30, 2021. Chancellor Rishi Sunak stated the interim rise in Universal Credit payments would be phased off by October during his Budget announcement earlier this year.
Both programs were adopted at the start of the pandemic last year as part of a larger social security package to help suffering households. While the government reverses these policies, some experts believe that losing access to these critical support pillars is happening too quickly. According to figures supplied by the Insolvency Service, firms in the UK planned only 12,687 job cutbacks in August, down 11% from July. Despite the end of the shutdown, this is the lowest number of proposed job cutbacks in the last seven years, indicating that the job market is returning to normal.
According to study conducted by the Institute for Public Policy Research (IPPR), a hidden “jobs gap” of up to 2.1 million people might stymie a seamless transition to full employment when the economy recovers to pre-pandemic levels.
According to the think tank, despite almost a million present vacancies and worker shortages in several vital industries, many Britons will face unstable work, low pay, and “underemployment” in the future.
The IPPR is urging the UK government to invest more in the welfare state and to “keep and tweak” the furlough scheme until the economy recovers.
Clare McNeil, the IPPR’s Associate Director for Work and the Welfare State, is one of several who has warned the government against moving through with its plans without putting in place the necessary safeguards to protect the most vulnerable.
Ms McNeil expressed her concerns about the removal of furlough as a source of support to This website in an exclusive interview.
“There’s still a lot of unknowns about how this will play out,” she said.
“By the end of September, when the plan is set to terminate, the Resolution Foundation forecasts that up to 900,000 individuals will still be on it.
“What will happen to unemployment after that?” says Brinkwire Summary News.