Government must urgently revisit its job retention and self-employment schemes so that no workers are left behind

Thursday, 2 April 2020 00:01

Labour's Shadow Chancellor John McDonnell MP, responding to IFS findings showing that workers are being left with nothing due to gaps in the Government's income protection schemes, said:

"The Government must now urgently revisit both its job retention scheme and its self-employment scheme.

"It is unacceptable that carers, those on shorter working hours, and new starters who began work after 28 February are not covered by the job retention scheme - and that two million self-employed people are not covered by the self-employment package.

"We urge the Government to consider proposals that we have put forward to adjust the support schemes so that no workers are left behind in this time of deep anxiety for so many."

ENDS

Notes to Editors:

The IFS notes that "[t]he JRS will not provide support for those who lose their job completely, who have to take unpaid leave to cover caring responsibilities (for example looking after their children), or who see a cut in their earnings but continue to work." It adds that "our rough estimate is that in total around 2 million people with some self-employment income (38% of them) will not have it covered" by the self-employment scheme.

Labour has proposed that the Government include carers in the Scheme: https://labour.org.uk/wp-content/uploads/2020/03/Labour%E2%80%99s-Economic-Plan-for-Individuals-Affected-By-Coronavirus-Final.pdf at p. 4, and that the Government closes holes in protection for those on reduced hours and those that started jobs after 28 February: https://www.john-mcdonnell.net/wp-content/uploads/sites/157/2020/03/Protecting-People-In-and-Out-of-Work-30-March-final.pdf .

We have also suggested amendments to the self-employment scheme: https://www.john-mcdonnell.net/wp-content/uploads/sites/157/2020/03/Protecting-People-In-and-Out-of-Work-30-March-final.pdf at p. 7.