Self-Employment Support Scheme pays out over £1.3 billion to thriving businesses, but nothing to 500,000 left without work

The Government’s £12.7 billion Self-Employment Income Support Scheme (SEISS) has been terribly targeted at those in need – with over 400,000 workers claiming support despite not losing any income during the crisis, while almost 500,000 people still without work have received no support at all. This is according to a major new Resolution Foundation report … Continued

Chancellor rightly slashes employer contributions to make part-time working scheme fit for purpose

The Chancellor has sharply, and rightly, changed course to tackle the central flaw in the Job Support Scheme (JSS), slashing the share of wages for hours not worked that employers must pay from 33 to 5 per cent, the Resolution Foundation said today (Friday). Today’s announcement will hugely increase the incentive for firms that are … Continued

Decisive action needed to tackle significant pay penalties faced by black, Asian and ethnic minority workers

Commenting on new ONS data published today (Monday) highlighting pay gaps between different ethnic groups, George Bangham, Economist at the Resolution Foundation, said: “While progress has been made in reducing ethnicity pay gaps for some groups, such as Indian and Bangladeshi workers, gaps have actually got larger for others, such as Black Caribbean, and White … Continued

Policy makers should have spent the summer planning for a second wave, rather than pinning hopes on a V

Commenting on the latest ONS GDP figures for August, James Smith, Research Director at the Resolution Foundation, said: “Disappointing growth figures for August confirm that Britain was never on course for a V-shaped recovery. “With further restrictions coming this Autumn, the Chancellor is setting out fresh economic support this afternoon. This should include local furloughing … Continued

Covid has created a U-shaped crisis as majority of young adults and pensioners stopped working

RF warns of a lost ‘covid generation’, with youth unemployment at risk of reaching its 1980s peak

Hopes of a V-shaped recovery have given way to the reality of a U-shaped crisis, with young adults and young pensioners most likely to have stopped working during the pandemic, according to the Resolution Foundation’s annual Intergenerational Audit published today (Thursday). The report – supported by the Nuffield Foundation – offers the first comprehensive assessment … Continued

Today’s MAC report is the latest reminder of the damage caused by appalling pay and conditions in the care sector

Commenting on the Migration Advisory Committee’s report published this morning, Kathleen Henehan, Senior Economist at the Resolution Foundation, said: “Today’s MAC report is the latest reminder of the damage caused by appalling pay and conditions in the care sector. Expanding our social care workforce could help our covid rsponse, provide vital employment opportunities for those … Continued

The Job Support Scheme will not support enough jobs – risking a major living standards squeeze

The Chancellor yesterday set out a timely renewed package of economic support. But with big unemployment increases still on the cards, and design flaws in post-furloughing job support, Britain is on course for a major squeeze on living standards in the months ahead, the Resolution Foundation said today (Friday) in its overnight analysis of the … Continued

Job Support Scheme moves jobs cliff edge to January and sets up difficult conversations between firms and workers

The Chancellor’s Job Support Scheme (JSS) will help stem but not halt the sharp rise in unemployment this Autumn, but avoidable design flaws will reduce its impact, the Resolution Foundation said in response to the Winter Economic Plan today (Thursday). With public restrictions being ramped up, the Chancellor is right to have announced fresh emergency … Continued

Chancellor must use his Winter Economic Plan to shift from phasing out to ramping back up support for firms and workers

Commenting on the Chancellor’s announcement today (Wednesday) that he has cancelled an Autumn Budget and will instead set out a Winter Economic Plan tomorrow, Torsten Bell, Chief Executive of the Resolution Foundation, said: “With the Prime Minister having ramped up restrictions to control the spread of the virus, it’s right that the Chancellor now shifts … Continued

Phasing in restrictions while simultaneously phasing out support is not a sustainable approach to the difficult months ahead

Commenting on the Government announcement today (Tuesday) of new public health restrictions to curb the rise in covid-19 infections, Torsten Bell, Chief Executive of the Resolution Foundation, said: “Phasing in restrictions to control the virus, while simultaneously phasing out support for firms and workers, isn’t a sustainable approach to the difficult months ahead. A new … Continued

UK economy experienced a Summer recovery, but a tough Autumn lies ahead

Commenting on the latest GDP figures for July published today (Friday), which shows that month-on-month growth was 6.6 per cent, but that monthly GDP was still 11.7 per cent down on pre-pandemic levels, James Smith Research Director at the Resolution Foundation, said: “The UK economy continued to rebound over the Summer as lockdown restrictions eased. … Continued

The Chancellor must reconsider his plans to swiftly phase out economic support given the painful reality that the economic crisis is here to stay

Commenting on the Treasury Committee’s second interim report of its inquiry into the Economic Impact of Coronavirus, which sets a wide range policy recommendations for the Chancellor ahead of his upcoming Budget, Torsten Bell, Chief Executive of the Resolution Foundation, said: “This authoritative account of the economic impact of coronavirus should be required reading for … Continued

Self-isolation payments will help up to four million workers in low-income families – but vast majority of workers will miss out

Commenting on the Government announcement today (Thursday) that it will pay £13 a day to workers losing earnings because they are asked to self-isolate in high Covid-risk areas if they are already in receipt of Working Tax Credit and Universal Credit, Karl Handscomb, Senior Economist at the Resolution Foundation, said: “Today’s announcement is a welcome … Continued

Short courses in social care and ‘green jobs’ likely to help workers move out of coronavirus-hit sectors, though UK ill-prepared to deliver large-scale retraining programmes

The UK’s inexperience in supporting workers through career changes does not leave policy makers with a clear roadmap for tackling unemployment, although short, specific training as part of job creation schemes could help those in hardest-hit sectors, the Resolution Foundation said today (Tuesday) in new analysis on the state of training and adult education in … Continued

No signs of a July bounce-back in jobs as early indicators show UK’s labour market is in a weak position as jobs support is reduced

Response to ONS labour market statistics August 2020

Hopes that the labour market would bounce-back in July in response to the lifting of lockdown restrictions are dampened by the further loss of 114,000 people from payrolls last month, the Resolution Foundation said today (Tuesday) in response to the latest ONS labour market statistics.  Today’s data shows a mixed picture as the recovery enters a new phase. Hiring has restarted from a near stop earlier in … Continued

Bank forecasts significantly stronger than in May

Although the Bank of England today upgraded its forecasts for GDP significantly, its projections still suggest the UK has experienced one of the largest economic hits among rich countries, the Resolution Foundation said today (Thursday) in response to the Bank’s Monetary Policy Report. The Bank notes that in its central case – in which a … Continued

Over half of furloughed workers have returned to work, ahead of the Job Retention Scheme’s phase-out beginning today

Widespread reports that nine million workers are currently furloughed are wide of the mark, with over half of such workers already likely to have returned to work, according to new Resolution Foundation research published to coincide with the beginning of the phase-out of the Job Retention Scheme (JRS) today (Saturday). Today marks a big shift … Continued

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