IPPR welcomes furlough reform plan proposed by Labour at TUC Conference
The think tank had previously called for such a scheme to prevent mass unemployment by encouraging part-time working
Recent IPPR research revealed that if the government removes the furlough scheme abruptly at the end of October 2 million viable jobs could be lost. The think tank has been arguing for the Job Retention Scheme to instead be extended until Spring 2021 and to be reformed to encourage people to return to work part-time.
IPPR welcomes Sir Keir Starmer’s announcement of support for a similar reform proposal whilst speaking at the TUC Conference.
Clare McNeil, IPPR Associate Director, said:
“The government is taking a huge risk in ending the Job Retention Scheme early. The economic recovery is yet to take hold and job vacancies remain stubbornly low. The warning signs are clear, with employers planning double the number of redundancies seen in the last recession.
“Mass unemployment and the long-term scarring this would result in must be avoided. Labour’s proposed furlough extension and reform plan announced today would help avoid a surge in unemployment.
“This proposal mirrors IPPR’s call for the Job Retention Scheme to be replaced by a time-limited Work Sharing scheme. This would support the worst-affected sectors through this challenging time and encourage part-time working, ideally with an offer of training or up-skilling for workers to boost their future prospects.
“This is the path many other countries are taking to stabilise jobs and incomes in this pandemic, while in the UK businesses and workers face huge uncertainty.”
- David Wastell, Head of News and Communications: 07921 403651 firstname.lastname@example.org
- Robin Harvey, Digital and Media Officer: 07779 204798 email@example.com
- Clare McNeil is available for interview
NOTES TO EDITORS
- IPPR proposed a similar reform in the paper, Rescue and recovery: Covid-19, jobs and income security by Clare McNeil, Carsten Jung and Dean Hochlaf. Available for download at: https://www.ippr.org/research/publications/rescue-and-recovery
- 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
Latest News from
Adam Smith Inst - Response to winter economy plan: sensible but not costless24/09/2020 14:35:00
The Adam Smith Institute has released the following statement in response to the Winter Economy Plan.
Ethnic minorities most at risk from debt as economic crisis creates Covid-19 ‘double whammy’, finds IPPR24/09/2020 11:35:00
One in eight employed before pandemic are now out of work, more than twice the UK average, according to new analysis by think tank
IFS - Even after the COVID-19 crisis, councils will need billions of extra funding to address a growing funding gap24/09/2020 10:35:00
English councils are facing a financial double whammy, with increases in costs and losses in income as a result of the COVID-19 crisis coming on top of underlying upwards pressures on spending, especially for adults’ and children’s social care services.
King's Fund - Urgent action is needed to improve working conditions for nurses and midwives24/09/2020 09:35:00
New minimum standards to improve working conditions and a review of 12-hour shifts are needed to address exhaustion and burnout among nurses and midwives, according to a new report from The King’s Fund, commissioned by the RCN Foundation.
10pm closing time “from a random policy generator” says IEA expert22/09/2020 12:35:00
Christopher Snowdon responds to latest coronavirus measures
Every two weeks of lockdown could cost the UK at least £8 billion in lost output, says IEA expert22/09/2020 11:35:00
Julian Jessop, IEA Economics Fellow, commented on the potential economic impact of a second national lockdown
Adam Smith Inst - The state of the (student) unions22/09/2020 10:35:00
The report, from the free market Adam Smith Institute, argues that student unions are perceived as ineffective by students, lack democratic legitimacy, and undermine freedom of association and expression. Extraordinarily, it finds that student unions that receive higher block grants from universities tend to be poorer performing in the National Student Survey.
IFS - Larger funding cuts for schools in poor areas leave them badly placed to deal with COVID-19 challenges22/09/2020 09:35:00
Schools serving more deprived pupils face major challenges over the next few years. Educational inequalities will have widened during lockdown. Planned increases in teacher starting salaries will also weigh more heavily on such schools, given they are more likely to employ new teachers.