Government urged to pay staff at firms affected by coronavirus
Ministers have been urged to protect firms struggling due to the coronavirus crisis by directly paying their staff.
The Resolution Foundation wants the Government to introduce a new Statutory Retention Pay (SRP) scheme, which would see people in danger of redundancy remain formally employed by their firm, but with the lion's share of their pay covered by the state.
The scheme, which would cost £8 billion for six months if a million workers were involved, has been backed by MPs including Pat McFadden.
The Labour MP for Wolverhampton South East said: "The issue is not just loans to business or benefit changes – it is direct help to workers who have been laid off as a result of this crisis.
"There will be hundreds of thousands of people, both employed and self employed, who have suddenly seen their income dry up as a result of changes in our behaviour which the government has asked for.
"Many other countries have put in place systems to support at least a proportion of those lost earnings.
"That’s what we have to do here or we will have huge numbers of unemployed people and huge numbers of households in acute financial distress.
"This is an unprecedented crisis and it needs an unprecedented response. Ministers must as a matter of urgency come forward with some form of wage support for those who have been laid off."
Under the scheme, firms would continue to pay workers at least two-thirds of their previous wages via their payroll, with the state providing a rebate for those payments.
The Resolution Foundation is also calling for an extension to statutory sick pay to include workers who earn less than £118 per week, as well as an increase in other benefits by one third.
