- In time of need
- Andrew Harrop , Howard Reed , Eloise Sacares
- 21 March 2023
- Welfare , Employment
The UK’s system of income replacement – financial protection when people leave a job or stop working temporarily – is an inadequate patchwork. Jobseeker’s allowance replaces just 12 per cent of average earnings and statutory sick pay just 16 per cent. For the most part, this falls far behind the support available in other rich countries.
And it is getting worse: with the exception of maternity payments, the value of support has declined significantly as a percentage of earnings since 1990. As a result, people who stop working face financial hardship and anxiety, and employers fail to retain and recruit the workers they need.
In this new report, Andrew Harrop, Howard Reed and Eloise Sacares make the case for a complete overhaul. Rather than fragmented reform on many fronts, they propose a comprehensive new system: British employment insurance.
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