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Government accused of abandoning workers with ‘lacklustre’ economic measures

THE government was accused by Britain’s trade union leaders today of abandoning workers with its lacklustre measures of economic support. 

Ministers were blasted by the TUC for not providing targeted support for wages and for failing to increase sick pay.

It came after Chancellor Rishi Sunak announced a £1 billion support package to businesses hit by Covid-19 restrictions following days of urgent lobbying from MPs, firms and hospitality and leisure officials.

The package includes one-off grants of up to £6,000 per premises in the affected sectors in England, which will be administered by local authorities.

The government will also cover the cost of statutory sick pay for Covid-related absences for firms with fewer than 250 employees.

And cultural organisations in England can access a further £30 million of funding during the winter via a culture recovery fund.

TUC general secretary Frances O’Grady criticised the support measures for not being conditional on employers keeping workers on and covering their wages.

“And they do nothing to fix the gaping holes in our sick pay system,” she added.

“The government has abandoned hospitality, arts and leisure staff.

“Millions of workers will go into Christmas worrying for their jobs and anxious about what they will do if asked to self-isolate.”

Ms O’Grady called on the Chancellor to “go back to the drawing board.”

“We need a new targeted furlough scheme that covers at least 80 per cent of workers’ wages, and that guarantees that no-one furloughed is paid less than the minimum wage,” she said.

“And we need decent sick pay — paid at the real living wage — available to everyone.”

Labour’s shadow chief secretary to the Treasury, Pat McFadden, called the announcement “a holding package from a government caught in a holding position.”

He said: “The Prime Minister is a prisoner of divisions inside his party and within the Cabinet about whether any further measures are needed and whether they will get past Tory backbenchers.

“That is not the way that crucial public health decisions should be taken.”

Transport union TSSA leader Manuel Cortes said it would have been better if the Chancellor had not bothered to return from California.

He said: “Our travel trade, and now our hospitality sector, are being badly hit by restrictions and government advice that people should reduce their social contacts.

“What we needed to hear from Sunak was that the government would be reintroducing the furlough scheme for workers within all areas of our economy which omicron is badly hurting.

“And of course, he should have also increased statutory sick pay across the board as the current rate is simply derisory.

“Instead of giving millions a Christmas cheer, Sunak has re-emerged from the California sunshine as Scrooge.”

Equity general secretary Paul Fleming said the announcement was “a shocking example of government negligence,” while Bectu leader Philippa Childs warned that the support would arrive too slowly. 

The Prime Minister today gave the go-ahead for people’s Christmas plans, although he warned tougher restrictions could be implemented post-December 25.

Boris Johnson said “continuing uncertainty” about the severity of the omicron variant and hospital admission rates means he does not believe there is enough evidence at the moment to justify stricter measures.

But the situation remains “finely balanced” and people should “exercise caution,” he added.

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