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A report which has been undertaken by the think tank, Resolution Foundation, has suggested that the Coronavirus Job Retention Scheme (CJRS) and Self-Employment Income Support Scheme (SEISS) should be used to encourage employees to self-isolate with a view to preventing them from spreading Covid-19.
Resolution Foundation ‘Time Out’ report
The research explored the current eligibility, generosity and efficacy of the financial support available to workers during the pandemic, and considered the case for reforming Statutory Sick Pay (SSP).
Currently, low-paid employees who are required to self-isolate are entitled to receive SSP for financial support if they earn an average of £120 per week. However, SSP only pays workers £96 a week, which is the lowest amount of financial support provided by the Government to workers across any advanced economy during the pandemic.
In summary, the report found:
- That self-isolation will play a pivotal role in combatting the virus into the New Year as the Covid-19 vaccine is rolled-out.
- SSP equates to less than a quarter of a typical worker’s previous earnings.
- Two million workers, who earn lower than £120 a week, do not qualify for SSP.
- Few workers (one in eight) are eligible or have benefited from the one-off payment of £500 through the Test and Trace Support Payment scheme.
Maja Gustafsson, Researcher at the Resolution Foundation, commented on the report:
“Getting people to self-isolate at home is one of the important tools we have in combatting Covid-19. But asking workers to do that often involves a major financial sacrifice – and the UK’s sick pay regime has been woefully inadequate in providing the necessary support. Many more Covid infections will have taken place as a result.
“Coronavirus vaccines will take many months to roll out, so more workers will need to self-isolate at home to contain the spread of the virus next year. Given the failure of the current sick pay regime, the Government must turn now to the far more successful job support schemes to provide workers and firms with the financial support they need to do the right thing.”
Head of Test and Trace, Dido Harding, has recently acknowledged that a lack of financial support has meant that some workers have refused to self-isolate:
“All the evidence shows that people are not complying with isolation not because they don’t want to but because they find it very difficult. The need to keep earning and to be able to feed your family is a fundamental element of it.”
Recommendations
As a result of the findings, Resolution Foundation has recommended to the Government that a more effective, substantial and easy to deliver support regime should be put in place for those who are required to self-isolate, which includes:
- Through the CJRS, employees who are required to self-isolate should receive furlough pay (80% of their employment earnings).
- Via the SEISS, workers should be paid pro-rata, with a grant up to £830.
- For self-employed persons who cannot access the SEISS, they should receive pay via enhanced Support Allowance (ESA).
How Nelsons can help
If you would like any advice in relation to the subjects discussed in this article, please contact a member of our Employment Team in Derby, Leicester, or Nottingham on 0800 024 1976 or via our online enquiry form.