Prospect warns of extreme hardship for thousands if government support withdrawn too early
Prospect has warned the government of the likelihood of mass redundancies and extreme financial hardship if support for jobs and incomes is withdrawn too soon.
In a letter to the Chancellor Rishi Sunak, general secretary Mike Clancy warned that there are many thousands of workers facing an “extremely perilous situation”. In particular he highlighted the plight of freelance workers, the self-employed, and others who are not covered by the schemes or who could be at risk of being made redundant if the criteria changed
He argued that the government should take immediate steps to avert disaster including:
- Extending the Self Employment Income Support Scheme (SEISS) alongside the Coronavirus Job Retention Scheme (CJRS)
- Fixing the gaps in the schemes, including for directors of limited companies and PAYE freelancers
- Introducing flexibility to the CJRS so that employers who are unable to make a contribution are not forced to lay off staff.
Prospect has been lobbying the Treasury and other government departments throughout the crisis on the design of the schemes to make sure that as many members as possible are covered.