Lots of discussions rightly about how to support the economy and specifically people through the coming months
Basic income is being proposed by some. I understand why but it’s misguided given the pace of what is happening, the constraints on the state and urgent task of ensuring balance sheets of people (and businesses) are protected
Pace wise we should have learnt from the last decade of (much more complex) Universal Credit that it’s takes time to sort a new system. We don’t have time. Yes writing a check sounds easy but there are huge read acrosses to wider policy, payment systems and more
Finite capacity of the state to do things is a real thing. That capacity is already basically gone - and the amount of it focused on getting help to families in need must prioritise payments to large numbers of people through existing institutions/policies
Priority must be quicker/more generous payments addressing the twin income shocks that come from nature of this crisis: 1) getting sick (extend sick pay to low paid now) 2) jobs and hours lost (4yr benefit freeze is now a macro economic mistake not just a poverty boosting one)
Remember - sick pay for a typical worker entitled to it only covers 30% of their wages. We can increase that NOW (with state not firms paying to avoid making firms balance sheets even more shot than they already are)
Out of work benefits are worth EVEN LESS than sick pay (£73/wk or £3,800/yr lower than it was in 1991-92, despite GDP per capita having grown by more than 50%). The state exists to bear risk in times like these - but we’ve been pushing risk onto people
And no system will be perfect/fit all hard cases so local authorities and job centres will need cash to ensure they are the answer to extreme hardship. Govt did some of this in Budget but much more will be required.
We’ve all got ideal welfare systems to argue for but priority must be real help that can be delivered fast. Plus it MUST get to individuals whose finances are hit - also the best macro stimulus. The problem isn’t that we don’t know what needs doing, we’re just not doing it.
