THE SNP have demanded the extension of existing Covid-19 support after new data suggested an ineffectiveness from temporary measures in preventing a widening of the inequality gap.
The Institute for Fiscal Studies found that while richer households have been able to build up savings faster than normal during the pandemic, poorer households have run them down or accumulated debt.
Now, the party’s shadow work and pensions secretary Neil Gray has demanded that Chancellor Rishi Sunak does more and extends the furlough scheme – which comes to a close tomorrow – into next year.
The SNP are also calling on the £20 Universal Credit increase to become permanent and extend it to legacy benefits, in addition to extending the Minimum Income Floor (MIF) suspension within Universal Credit in a bid to prevent a further blow for the self-employed.
Gray said: “The SNP welcomed the coronavirus support brought in by the UK Government but this data clearly shows that more needs to be done for those that need support most. It also starkly highlights that if the Chancellor ploughs ahead with plans to end furlough, end the Universal Credit uplift in April and allow the MIF to expire in November then those that can least afford it will suffer another hammer blow.
“The SNP has been calling for a U-turn on Tory plans to slash Universal Credit and scrap the furlough scheme for the past six months. With a second wave of coronavirus hitting the UK, increased restrictions in place, Brexit uncertainty and a likely rise in prices after Brexit, it is vital that even at this late stage the Prime Minister and Chancellor finally see sense and extend current support to protect people’s jobs and incomes.”
He added: “I am urging the Chancellor to follow through on his commitment to do whatever it takes to ensure nobody is left behind and announce without delay that he will take these steps to ease the worry millions across the UK will have over finances. If he will not, Scotland must have the necessary powers so we can get the job done.”
It comes as Economy Secretary Fiona Hyslop urged Sunak to do more in a bid to help low-paid workers when the current furlough scheme ends this weekend.
The Treasury’s Job Support Scheme is set to replace the measure, which has been in place for seven months.
The Scottish Government says the new measure will not do enough to protect low-paid workers.
Hyslop said: “From the earliest days of this pandemic, we have urged the UK Government to do everything possible to protect workers and jobs as we are forced to make impossible choices to keep people safe.
“While the introduction of the Job Support Scheme is better than furlough ending entirely, it does not go far enough in its new form.”
She added: “Unlike the Scottish Government, the UK Government has the borrowing powers necessary to provide appropriate funding to keep people in work and reduce the risk of mass redundancies.”
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