Keir Starmer calls for national income guarantee scheme amid coronavirus crisis

Labour leadership frontrunner Keir Starmer has called for the implementation of a national income guarantee scheme designed to combat the economic impact of Covid-19.

The Holborn MP, who is currently running to succeed Jeremy Corbyn as Labour leader, is urging the government to introduce a “bold, comprehensive package to protect the incomes of British workers”.

Although the Chancellor has unveiled financial support for businesses amid the coronavirus pandemic, mostly in the form of government-backed loans, there has been little for employees directly who are losing jobs or seeing their pay cut.

Under the proposals being put forward by Starmer:

• The government-backed loans would be “tied into an agreement with individual businesses about job protection”, placing conditions on the support offered;
• The government would introduce a “wage subsidy initiative” that would see businesses affected by coronavirus-related job losses directly subsidised;
• Statutory sick pay would be trebled to match the real living wage, and changed to cover “everyone who needs it, including the self-employed”;
• Ministers would “strengthen and expand the social security system at the earliest opportunity”.

Commenting on the policy suggestions, Starmer said: “Millions of people are already feeling the impact of the economic shock caused by the coronavirus. We have all heard tragic stories of people expecting to be laid off work or see their incomes fall.

“Days into this crisis ministers are still several steps behind where they need to be in order to reassure people facing a loss of income. Other countries across the world, such as Denmark, have shown what actions government can take to protect people’s incomes.

“The proposals I am setting out today would provide essential reassurance to people that their wages would be guaranteed during this crisis. Businesses would be incentivised to protect jobs, incomes would be protected and the social security system would be strengthened.

“These proposals are bold, but necessary. We are potentially days away from further social-distancing measures that will change British life. It is imperative that the government acts to support workers to buy food, pay the bills and cover the cost of living.

“I urge ministers to give these proposals serious consideration and to work with businesses and trade unions to ensure families are given the help they need.”

Rebecca Long-Bailey, also running to become Labour leader, has called for income protection, suspension of rent payments, a moratorium on utility bills, and a universal basic income.

The result of Labour’s leadership and deputy leadership elections will be announced on April 4th. Keir Starmer and Angela Rayner have long been considered the frontrunners in their respective contests.