No long-term view

The chancellor rightly won approval yesterday when he extended statutory sick pay to some employees who self-isolate to help contain the corona virus.

But the move does nothing for millions of workers.

If you’re self-employed (4.8 million) or in one of the 1.5 million jobs that don’t qualify for sick pay, the anxiety remains.

This gap reveals what national Citizens Advice* describes as “long-standing flaws and inconsistencies in our sick pay and benefits systems”.

Consider positive Budget announcements on universal credit.

• The rate at which debts can be deducted falls from 30% to 25%.  But not until October 2021.
• The period over which universal credit advances can be repaid rises to 24 months.  But not until October 2021.

Meanwhile there was no announcement about reducing the 5-week wait for first payment.  If you have no money you can apply for an advance payment.  But these payments are loans and must be repaid.  Beginning a universal credit journey with a sizeable debt leads in a worrying number of cases to dependence on a food bank or even risk of losing your home.

Fit for purpose?

The Budget provides a snapshot of a system often not fit for purpose (if that is to promote the independence and dignity of all citizens).  The government needs a longer-term view of how to fill the gaps and build a stronger social safety net.

With thanks to Surrey Welfare Rights Unit
** Response to Budget announcements on sick pay and benefits, Citizens Advice, 11/03/20