14 May, 2020 Open access
14 May, 2020 Open access
Job Retention Scheme would not have been necessary but for the 'inadequacy of the existing social security system'
A more generous unemployment benefit should be a key feature of the post-COVID social security system, the Child Poverty Action Group (CPAG) has argued.
Following the announcement on 12 May 2020 that the Coronavirus Job Retention Scheme (CJRS) is being extended for a further four months until the end of October 2020, Senior Policy Analyst at CPAG Tom Lee suggests that the emergency measures put in place in response to the coronavirus (COVID-19) pandemic were necessary only because of the inadequacy of the existing social security system. Advocating a much more generous unemployment benefit post-COVID, Mr Lee argues that this would help to stabilise the economy in times of uncertainty, and play a significant role in helping to reduce and prevent poverty.
Making comparisons with both the CJRS and approaches taken by other European countries - which have demonstrated how much more generous schemes can work with a functioning labour market - Mr Lee sets out the key features of what a more effective unemployment benefit might look like -
Concluding that there is no reason why more generous unemployment benefits couldn’t exist in the UK permanently, Mr Lee says -
'The unprecedented number of people facing unemployment as a result of COVID-19 makes the time right to re-examine our inadequate unemployment benefits and put in place more effective support systems that provide greater security for workers in their time of need. This is an essential component of a stronger, more effective social security system, one that can provide a secure future for children and families.'
For more information see Unemployment support post-COVID: learning from the job retention scheme from cpag.org.uk
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