He said the coronavirus job retention program – which supports the wages of more than 9 million workers at a taxpayer cost of more than £ 22 billion so far – should be turned into a job protection system that would be kept in place throughout 2021.
Under current plans, the program will close its doors to new entrants on Wednesday. Companies will be invited to contribute to the wages of workers on leave from August, regardless of whether they operate in sectors of the economy which remain closed in accordance with government rules, before its complete closure at the end of October.
The intervention came as the Labor Party, union bosses and business leaders are pressuring Chancellor Rishi Sunak to use his summer statement scheduled for next month to extend support to prevent a imminent job crisis to settle.Chancellor Anneliese Dodds called on Sunak to continue paying higher wage subsidies to sectors of the economy hardest hit by the coronavirus crisis, such as hospitality and retail, where losses jobs are expected to increase the most.
Sunak is believed to be in favor of relaxing lock-in restrictions to help businesses reopen as the best way to fight unemployment. The Chancellor could also announce VAT reductions and more tax breaks for businesses to encourage them to keep workers or hire new workers.
According to the foundation, long-term job losses will be more concentrated in the most affected sectors. During the lockout, he said workers in the hotel, non-food retail and arts, recreation and entertainment industries were more than twice as likely to experience job changes than the rest. economy.
Urging the government to act quickly to tackle the highest unemployment rate since the early 1990s, Nye Cominetti, senior economist at the Resolution Foundation, said: “Britain is slowly emerging from the deadlock that halted the economy and cuts jobs. But we are far from returning to business as usual, and the job crisis is far from over. “