Chancellor Rishi Sunak is being warned that he risks creating a “historic mistake” when he unwinds the jobs furlough plot this weekend amid fresh claims the UK’s welfare system is ill-prepared for a spike in unemployment.

Keir Starmer and shadow chancellor Anneliese Dodds will state that the government has “24 hours to rescue British jobs” ahead of the Treasury starts cutting back service on Saturday for workers paid to remain at home during the pandemic.

Their request came as it emerged that a new strategy to assist the long term jobless – trumpeted by Sunak in his Summer Statement – may not be ready until 2021.

The chancellor outlined moves to get what he called “urgent assistance ” to people who would be struck by the new wave of unemployment, decreasing the amount of work trainers in Job Centres and increasing a support fund.

However, HuffPost UK has been told that Sunak’s line which the government has been “developing a brand new scheme to support the long-term unemployed” may not really materialise this year.

In this Saturday, companies will need to pay National Insurance and pension contributions for their employees.

And in September, companies will need to pay 10% of furloughed workers ’ salaries — increasing to 20% in October.

The furlough scheme has encouraged 9.5 million who have kept 80 percent of their wages, at a cost of pound;31.7 billion to date, but ministers say the cost can’t continue indefinitely.

Some company studies have demonstrated that nearly half of them are likely to begin making people redundant when they’re asked to foot the bill themselves for maintaining people in your home.

Dodds said the move could lead to a “python-like” squeeze on jobs in some of the sectors – such as high street retail and hospitality and creative industries – which have been hardest hit by the coronavirus pandemic.

Ahead of a trip to Peterborough, where the party will launch its nationwide jobs campaign on Friday, Dodds stated: “The Chancellor’s refusal to abandon his inaugural withdrawal of furlough is a historic error.

“The reward for months of hard work and sacrifice by the British people can’t be a P45. It’s not too late to the Chancellor to see sense, change course and support the companies and sectors that need it all. ”

Labour wants the furlough scheme to be reformed rather than wound down completely, with a concentration on key sectors. It’s calling for a £1.7 billion “fightback fund” to prevent firms going under and added support to areas pressured into local lockdowns.

A police source stated that the furlough service was “comprehensive and generous” and struck back at Labour’s claims.

“The furlough scheme is unprecedented and has up to Now supported the wages of 9.5 million people, at a cost of £31.7 billion and will operate for eight months in total,” they stated

“It isn’t a ‘one-size-fits-all’ policy, it’s by far the most extensive and generous model of service which can be provided. The Labour party seem to be somewhat good at calling for things, but repeatedly fail to put forward any realistic or comprehensive plan on how they can be delivered.

“We are yet to hear for instance who they believe should be left out of the ‘targeted service ’ and why. As the economy reopens, we’re adjusting the service offered to ensure people can get back to work and we can rebuild our economy. ”

Unite manager Len McCluskey added: “If we want to avert the occupations ’ reduction tsunami we fear will sweep throughout our communities this summer, we want the government to act and to do so urgently. ”

The DWP, in addition to the Treasury, has been commended by the prime minister for the rapid way in which it provided additional support to people driven on Universal Credit as a way of making up for earnings lost during the crisis.

However, Sunak’s reference into the development of a “new strategy ” to its long term jobless – classed as people out of work for more than a year – hasn’t yet been backed up using any detail.

It’s uncertain whether existing schemes will be tweaked or whether a brand-new service programme will be rolled out, but no time frame has yet been set for whichever path is selected.

A cross-party parliamentary report into Universal Credit was also expected to be highly critical on Friday morning.

A number of the public are for the first time encountering the Tories’ flagship welfare system, which divides six different benefits into one payment.

Critics have claimed its level is set too low and it merely offers loans not grants to people in most urgent need.

A spokesperson for the DWP said: “Our Strategy for Jobs will create, support and protect jobs, and our immediate focus is on supporting people back into work fast which is why we’re gaining 4,500 new Work Coaches set up for this autumn.

“Meanwhile, officials are working round the clock to get new service for the long term unemployed set up and we will announce additional detail including its start date in due course. ”

Chancellor Rishi Sunak is being warned that he risks creating a “historic mistake” when he unwinds the jobs furlough plot this weekend amid fresh claims the UK’s welfare system is ill-prepared for a spike in unemployment.

Keir Starmer and shadow chancellor Anneliese Dodds will say that the government has “24 hours to rescue British occupations ” until the Treasury starts cutting back service on Saturday for workers paid to remain at home during the pandemic.

Their request came as it emerged that a new strategy to assist the long term jobless – trumpeted by Sunak in his Summer Statement – may not be ready until 2021.

The chancellor outlined moves to get what he called “urgent support” to people who would be struck by the new wave of unemployment, decreasing the amount of work trainers in Job Centres and increasing a service fund.

However, HuffPost UK has been told that Sunak’s line which the government has been “developing a brand new scheme to support the long-term unemployed” may not really materialise this year.

In this Saturday, companies will need to pay National Insurance and pension contributions for their employees.

And in September, companies will need to pay 10% of furloughed workers ’ salaries — increasing to 20% in October.

The furlough scheme has encouraged 9.5 million who have kept 80 percent of their wages, at a cost of pound;31.7 billion to date, but ministers say the cost cannot continue indefinitely.

Some employer studies have demonstrated that nearly half of them are likely to begin making people redundant when they’re asked to foot the bill themselves for maintaining people in your home.

Dodds said the transfer could lead to a “python-like” squeeze on jobs in some of the sectors – such as high street retail and hospitality and creative businesses – which were hardest hit by the coronavirus pandemic.

Ahead of a trip to Peterborough, in which the party will launch its nationwide jobs campaign on Friday, Dodds stated: “The Chancellor’s refusal to abandon his inaugural withdrawal of furlough is a historic error.

“The reward for months of hard work and sacrifice by the British people cannot be a P45. It’s not too late to the Chancellor to see sense, change course and support the companies and sectors that need it . ”

Labour wants the furlough scheme to be reformed rather than wound down completely, with a concentration on key sectors. It’s calling for a £1.7 billion “fightback fund” to prevent firms going under and added support to areas pressured into local lockdowns.

A police source stated that the furlough service was “comprehensive and generous” and struck back at Labour’s claims.

“The furlough scheme is unprecedented and has up to Now supported the wages of 9.5 million people, at a cost of £31.7 billion and will operate for eight months in total,” they stated

“It isn’t a ‘one-size-fits-all’ policy, it’s by far the most extensive and generous model of service which can be provided. The Labour party seem to be somewhat good at calling for things, but repeatedly fail to put forward any realistic or comprehensive plan on how they can be delivered.

“We are yet to hear for instance who they believe should be left out of the ‘targeted service ’ and why. As the economy reopens, we’re adjusting the service offered to ensure people can get back to work and we can rebuild our economy. ”

Unite manager Len McCluskey added: “If we want to avert the jobs’ reduction tsunami we fear will sweep throughout our communities this summer, we want the government to act and to do so urgently. ”

The DWP, in addition to the Treasury, has been commended by the prime minister for the rapid way in which it provided additional support to people pushed onto Universal Credit as a way of making up for earnings lost during the crisis.

However, Sunak’s reference into the development of a “new strategy ” to its long term jobless – classed as people outside of work for more than a year – hasn’t yet been backed up using any detail.

It’s uncertain whether existing schemes will be tweaked or whether a brand-new service programme will be rolled out, but no time frame has yet been set for whichever path is selected.

A cross-party parliamentary report into Universal Credit was also expected to be highly critical on Friday morning.

A number of the public are for the first time encountering the Tories’ flagship welfare system, which divides six different benefits into one payment.

Critics have claimed its level is set too low and it merely offers loans not grants to people in most urgent need.

A spokesperson for the DWP said: “Our Strategy for Jobs will create, support and protect jobs, and our immediate focus is on supporting people back into work fast which is why we’re gaining 4,500 new Work Coaches set up for this autumn.

“Meanwhile, officials are working round the clock to get brand new support for the long term unemployed set up and we will announce additional detail including its start date in due course. ”

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