Recommendation 6

Too much chopping and changing of the new schemes has created uncertainty for the UK nations, regions and businesses, regarding financial support and job security. Nations, regions and businesses, as well as their employees, need as much certainty as possible to allow them to plan ahead. Instead what they got in the autumn was a sequence of announcements, right to the very end of the end of first phase of the schemes, constantly adjusting the levels and availability of funding support for workers. The government announced on 5 November that both the CJRS and SEISS would be extended with levels of support broadly equivalent to the levels provided under the first phase of the schemes. We are concerned that businesses’ response to this initial uncertainly may have resulted in more workers being laid- off, even though eligibility for the government’s extended schemes was moved back to 23 September to cover such redundancies. Recommendation: The Departments should provide as much clarity and forewarning as possible about the employment support arrangements that will be available for UK nations, regions and businesses under conditions of national lockdown, regional lockdown and easing of restrictions for the remainder of the covid-19 pandemic. It should commit to this ahead of the Treasury minute response so employers can be clear that they can plan ahead with greater certainty.