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Just published a short piece on what next for the Job Retention Scheme.
@RishiSunak will be making three big decisions this week.
First, on employer contributions...
@RishiSunak will be making three big decisions this week.
First, on employer contributions...
There& #39;s a strong case for treating the hardest-hit sectors differently from the bulk of the economy.
They& #39;re on a slower & #39;unlockdown& #39; timetable, with bigger hits to demand and supply likely.
They& #39;re on a slower & #39;unlockdown& #39; timetable, with bigger hits to demand and supply likely.
Going for a one-size-fits-all approach means finding the magic (maybe non-existent) number.
A cost-sharing amount that& #39;s high enough to get most businesses using the JRS increasing economic activity, but not too high so as to cause excess redundancies from hospitality/leisure.
A cost-sharing amount that& #39;s high enough to get most businesses using the JRS increasing economic activity, but not too high so as to cause excess redundancies from hospitality/leisure.
That& #39;s why putting some sectors on a slower timetable makes sense. Chancellor should also not feel like he has to set a cost-sharing rate and stick to it. Better to start low (c. 10%) and ramp-up over the following months.
Next decision is on how to operate flexible furloughing. Three key things here:
1. As flexible as possible
2. Matched with tough/proactive/clear enforcement
3. Introduce as soon as possible.
1. As flexible as possible
2. Matched with tough/proactive/clear enforcement
3. Introduce as soon as possible.
Third decision: when to close scheme to new entrants.
Soon for businesses who haven& #39;t used it yet. For those that have, allow new furloughs but don& #39;t allow an increase in furloughs at any one time per firm.
Soon for businesses who haven& #39;t used it yet. For those that have, allow new furloughs but don& #39;t allow an increase in furloughs at any one time per firm.
And finally - don& #39;t wind-down the JRS for those who cannot work as a direct result of non-economic interventions in their lives to protect the community.
Think parents caring for children usually at school, or those told to self-isolate for successful test/trace.
Think parents caring for children usually at school, or those told to self-isolate for successful test/trace.
Read the whole blog here https://www.resolutionfoundation.org/comment/three-big-decisions-for-the-chancellor-on-the-future-of-the-job-retention-scheme/">https://www.resolutionfoundation.org/comment/t...
And the full report on the future of the JRS for more of the analysis underpinning these recommendations https://www.resolutionfoundation.org/publications/getting-britain-working-safely-again/">https://www.resolutionfoundation.org/publicati...
