Unemployment: Britain is ‘sleepwalking’ into a crisis – Rishi Sunak urged to act | Personal Finance | Finance

Unemployment has unfortunately been an issue which many have been forced to reckon with as a result of the COVID-19 pandemic. While furlough and the SEISS scheme have offered a helping hand to millions, some have been excluded, while others were only supported for a certain period of time. However, the House of Lords has warned the government the issue is only set to become more entrenched within British society as problems continue.

The Economic Affairs Committee today released a 74-page report entitled ‘Time for a New Deal’ in which it questioned the current approach of the government. 

The report has called for a new perspective, with a deal to help the country recover from the impacts of the pandemic. 

Lord Forsyth, the chair of the committee commented on the matter in the report.

He said: “The government is sleepwalking into an unemployment crisis. This report is trying to save the prospects of a generation of young people.

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This, it said, should be the major element of the government’s so-called “levelling up” agenda.

To stop a cliff edge of unemployment due to the effects of the pandemic, at the end of October, the government took the decision to extend its support schemes.

Furlough and payment holidays which were due to end on October 31, 2020, were given an extension to provide further support. 

Rishi Sunak said it was appropriate to continue support measures to provide help to Britons in crisis. 

The Lords committee also made recommendations on support available through Universal Credit. 

The committee said there was an urgent need to reform the benefits system as it currently stands. 

Additional support has also been recommended for job creation to help people into employment. 

The Chancellor has been urged to extend the £20 per week uplift to the standard allowance, as well as providing an equal amount of support to those on legacy benefits. 

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