The big hole in Rishi Sunak’s Job Support Scheme

I don’t want to sound churlish about the wide ranging package of economic support announced by the chancellor, the centrepiece of which is the Job Support Scheme that will subsidise the wages of workers on short time as a result of the pandemic.

There is much to like and it is to Rishi Sunak’s credit that he consulted with, and listened to, both unions and employers in formulating his plans.

But there is still a gaping hole at the centre of them, which Shadow Chancellor Annalise Dodds, given the tough task of responding, hit the back of the net with: the lack of any mention of training.

One of the factors that has long held back the British economy is its woeful record when it comes to developing the skills of its workforce.

This has been recognised in government, but it has struggled to find an effective means of improving the situation.

The unique situation presented by the pandemic would appear to offer up an opportunity to try again. It is something the government should seize.

The scheme is aimed at supporting viable jobs; those that would (in theory) be fine were the pandemic on its way out instead of in the early stages of its second wave.

The workers supported through it won’t have as much time on their hands as those furloughed via the Job Retention Scheme it is designed to succeed, but they will still have plenty.

For employers to qualify for the scheme, their staff have to work at least a third of their hours, with the government picking up the tab for the rest. This means they could find themselves at work for less than two days a week.

Now, it’s false, and insulting, to suggest, as some have, that furloughed workers have simply lolled around watching Netflix. This especially true of people with families, whose time on furlough has often been spent playing the role of amateur educator.

But those on the scheme will still be presented with a lot of potentially dead time. That being the case, wouldn’t it make sense for them, and their employers, to be able to derive some benefit from it?

Funding the scheme is going to force the chancellor to borrow a lot of money. Debt hawks have (mostly) been quieted by the fact that it’s proved very necessary and the government’s borrowings are cheap to service with interests rates are close to zero. They may yet fall further and they are expected to remain low for many years.

But even cheap borrowing is more palatable if there’s a return to be had from it.

Presenting workers on partial furlough with opportunities for training, and adding to their skills, holds out the prospect of that. It would benefit them, their employers, and the economy. It goes without saying that freelancers could and should be included.

Sunak, who has proven himself a rarity in government with his willingness to listen and take on board the views of stakeholders (it may help to explain his success by contrast to some of his colleagues) needs to open his doors again with a view to filling this gap in his proposals.

The TUC has argued for the convening of a National Recovery Council. How best to upskill workers on the scheme would be a good first subject for discussion.

But perhaps Sunak has something up his sleeve for a separate announcement? If he doesn’t, it would count as a miss. And a bad one.