New Omicron support measures only the ‘first step’ towards what’s needed, says think tank 

Progressive think tank, the Institute of Public Policy Research (IPPR) has called for further action to limit the financial toll of Omicron.

Their remarks come after the Treasury launched a £1 billion support package this afternoon.

The new fund will provide one-off grants of up to £6,000 per premises for businesses in the hospitality and leisure sectors in England.

Reacting to the Chancellor’s announcement of some new measures to support businesses affected by the Omicron crisis, Dr George Dibb, head of IPPR’s Centre for Economic Justice, said:

“Rishi Sunak is right today to put in place grant support for struggling businesses but we believe that to protect jobs, prevent harm to the economic recovery, and boost the UK economy in the long term, this is just the first step and he should go further.

“The chancellor has subsidised the cost of sick pay to businesses but not shifted the incentives to make self-isolating financially sustainable for many people. Sunak should urgently increase the level of sick pay and expand eligibility so more people can claim it. Additionally, we support putting in place a new furlough scheme and supporting the worst-off with a Universal Credit boost.

“This wave of Covid-19 is happening just as inflation and price spikes are causing a cost-of-living crisis. It’s not sufficient to just support businesses through this crisis, further measures to support people’s incomes are needed. Without action now those on low incomes are being left out in the cold this winter.”