The Job Retention Scheme does not provide much support for employees, it mainly transfers taxpayers money to businesses that can still make staff redundant. Indeed, the Scheme rules explicitly states that companies can make staff redundant whilst staff are on furlough.
This allows the scheme to be abused as employers can get government to pay salaries during any period of redundancy consultation and notice. Essentially taxpayers will be helping business to survive whilst at the same time increasing unemployment.
The Scheme rules should be changed immediately so that any business that applies for the JRS are forbidden to start any redundancy process whilst they are receiving government support for furlough payments.
Small business is 60% of all employment. By killing small business you kill the majority of wages in the community. Redundancy is exactly that. A position that is not justified by the volume of sales of the business.
I think you have been exposed to far too many years of communist Labour Party propaganda. Small business is the life of a community it hires and spends in that community. Keeping these businesses healthy so they can restart your community economy is vital.
But if you would like a depression, instead of recession, where a third of people are unemployed just keep worrying about yourself. You will assist in making it happen. This is not an “Us and Them” propasition this is a time for unity. Part of that is to recognize the need for support for all not just those branding themselves as victims.
Scott Allan
4 years ago
The doomsday scenario proffered by Alan Hall that suggests the natural state of employers is to abuse the retention scheme is exactly the narrow thinking that is not needed at this time. The reality is the majority of employers will use the scheme correctly and for the purpose intended. A minoirity may manipulate it. This is not a reason to abandon a good idea. No idea will be perfect. Keeping the connection between employer and employee as a synergy for success in rebuilding a damaged economy is wise. Pursuing a socialist/communist agenda that all things come from government is destructive.
Paul the firefighter had a good article on the sound policy that this article extends. Relief in the critital areas of employment continuation, rent/mortgage relief, utility relief and this article deals with debt/interest payment releif. Which is a worthy extension because it is 17% of net earnings for many families
Again I caution the glossing over relief to private landlords. For the majority they are small investors without a large capacity to fund others housing. Loans to them can be only valued on a future cash flow. As such mandating no evictions without significant incentives for them will drive a great many to bankruptcy and diminish housing for the poor. A government write off of capital gains for landlords for income foregone at 300% for the year or two after this crisis is necessary. Firstly it will allow lenders to calculate greater earnings justifying loans. Secondly it will give landlords the opportunity to repair and upgrade causing the lift in employment the greater economy will require to recover. Further this policy would see employment not concerntrated but aggregated proportionately over the country providing equal improvement in earnings and life amenity to all UK residents.
If a landlord gets the benefit of a moratorium on their mortgage, that needs to pass through to the tenant. Otherwise the landlord gets an uninterrupted income stream and a halt to their own interest payments.
Michael I can tell you have never owned a property for rent. Mortgage relief offered is “deferred” payment with the accrual of interest. There is no financial benifit to this person . In fact over the course of the mortagage they pay more. They just pay later. So the discount to renters should be zero. And their rent should be increased to cover the cost of additional interest using your rationale.
Michael Dawson
4 years ago
I agree with the article. I’m in a fortunate position of having some savings, no mortgage and a job that I can do unimpeded from home. Not everyone is in that situation. There will be a lot of economic pain from the current crisis and it’s important it is shared equitably. In my view, that means a debt moratorium. If it also means a moratorium on interest payments for savers, so be it – frankly, the rates are so low that it won’t make much difference to most people.
The Job Retention Scheme does not provide much support for employees, it mainly transfers taxpayers money to businesses that can still make staff redundant. Indeed, the Scheme rules explicitly states that companies can make staff redundant whilst staff are on furlough.
This allows the scheme to be abused as employers can get government to pay salaries during any period of redundancy consultation and notice. Essentially taxpayers will be helping business to survive whilst at the same time increasing unemployment.
The Scheme rules should be changed immediately so that any business that applies for the JRS are forbidden to start any redundancy process whilst they are receiving government support for furlough payments.
Small business is 60% of all employment. By killing small business you kill the majority of wages in the community. Redundancy is exactly that. A position that is not justified by the volume of sales of the business.
I think you have been exposed to far too many years of communist Labour Party propaganda. Small business is the life of a community it hires and spends in that community. Keeping these businesses healthy so they can restart your community economy is vital.
But if you would like a depression, instead of recession, where a third of people are unemployed just keep worrying about yourself. You will assist in making it happen. This is not an “Us and Them” propasition this is a time for unity. Part of that is to recognize the need for support for all not just those branding themselves as victims.
The doomsday scenario proffered by Alan Hall that suggests the natural state of employers is to abuse the retention scheme is exactly the narrow thinking that is not needed at this time. The reality is the majority of employers will use the scheme correctly and for the purpose intended. A minoirity may manipulate it. This is not a reason to abandon a good idea. No idea will be perfect. Keeping the connection between employer and employee as a synergy for success in rebuilding a damaged economy is wise. Pursuing a socialist/communist agenda that all things come from government is destructive.
Paul the firefighter had a good article on the sound policy that this article extends. Relief in the critital areas of employment continuation, rent/mortgage relief, utility relief and this article deals with debt/interest payment releif. Which is a worthy extension because it is 17% of net earnings for many families
Again I caution the glossing over relief to private landlords. For the majority they are small investors without a large capacity to fund others housing. Loans to them can be only valued on a future cash flow. As such mandating no evictions without significant incentives for them will drive a great many to bankruptcy and diminish housing for the poor. A government write off of capital gains for landlords for income foregone at 300% for the year or two after this crisis is necessary. Firstly it will allow lenders to calculate greater earnings justifying loans. Secondly it will give landlords the opportunity to repair and upgrade causing the lift in employment the greater economy will require to recover. Further this policy would see employment not concerntrated but aggregated proportionately over the country providing equal improvement in earnings and life amenity to all UK residents.
If a landlord gets the benefit of a moratorium on their mortgage, that needs to pass through to the tenant. Otherwise the landlord gets an uninterrupted income stream and a halt to their own interest payments.
Michael I can tell you have never owned a property for rent. Mortgage relief offered is “deferred” payment with the accrual of interest. There is no financial benifit to this person . In fact over the course of the mortagage they pay more. They just pay later. So the discount to renters should be zero. And their rent should be increased to cover the cost of additional interest using your rationale.
I agree with the article. I’m in a fortunate position of having some savings, no mortgage and a job that I can do unimpeded from home. Not everyone is in that situation. There will be a lot of economic pain from the current crisis and it’s important it is shared equitably. In my view, that means a debt moratorium. If it also means a moratorium on interest payments for savers, so be it – frankly, the rates are so low that it won’t make much difference to most people.