Source: Labour List UK
New research has found that only 230,000 jobs will be saved by the Chancellor’s new job support schemes in the coronavirus pandemic while predicting that just under two million people in otherwise viable work will be made unemployed.
The analysis by the Institute of Public Policy Research (IPPR) published today indicates that Rishi Sunak’s new employment support programme and job retention bonus will not make it viable for many businesses to retain their staff.
The two schemes were announced as replacements for furlough, which will be withdrawn at the end of October, but IPPR has argued that the policies will only benefit those who earn between £625 and £987 a month, around 10% of workers.
Employees who earn less than that figure do not meet the requirements for the job retention bonus, while for those who earn more the special Covid retention bonus is too small to justify keeping them employed.
IPPR previously predicted that roughly two million viable jobs will still need support when furlough comes to an end. Just 230,000 workers are set to benefit from the new support scheme, meaning a remaining 1.8 million are at risk of unemployment.