A large number of people in the United Kingdom, especially in Great Britain are becoming the victim of gaps in their wages. These gaps are related to the nemesis, Coronavirus subsidy plans regarding the wages they receive. Moreover, the subsidy also contains a number of benefits that they can receive from the system.
After the massive outbreak of Coronavirus, high-level people of the British government executed a certain number of plans to increase their country’s financial condition.
In doing so, there are many self-employed workers who are facing problems with this decision. While the other businessmen or employed people have a stable financial situation in this crisis. The chancellor of Resolution Foundation is planning to increase the benefits system that will eventually support the household activities of the people.
About the Salaries
The United Kingdom government has decided to pay nearly 80% of the salaries to the office employees. Moreover, it also has a set plan to help the self-employed people as well. The decision is very much valid just because of the crisis that is going on.
Before that, the UK government has given a warning to the people that nearly 2 million people on an average will not get any type of protection from them. But, self-employed people will be eligible, those who are earning more than £50,000.
In addition to that, another category of self-employed people will also be allowed to avail the facilities who just started to work for themselves just over a year. Additionally, another group of more than 2 million people, who run their own companies will also stay at the back through the gaps of the ultimate safety from the government.
Experiencing gaps from the government has led a certain group of people to pay only for themselves. The payment will be only from their dividends related to income but eventually less than a salary of course. Salary is a different thing and dividends don’t fall in the category of salary.
Impact of Coronavirus and Rise of certain Crisis
The deadly impact of Coronavirus has taken the world to a devastating stage. There are crises spread here and there especially due to the lockdown of maximum business organizations. According to some reports previously, a large number of self-employed people would face a drastic situation.
It would have been outnumbered the benefits on an average 20% earnings that are already lost. Furthermore, the government wouldn’t recover it. Now, the situation is somewhat under control. People who are now self-employed, their 80% of the income will eventually dry up at the starting month of June.
They can also receive subsidies that will solely depend on their earnings from the past. If the situation gets more critical, then they can also become unemployed. As a result, they might have to stop their business and get financially deteriorated.
Condition of the Workers
Those workers who have already lost their work will never be able to get any type of help from the UK government. Moreover, they will also not be able to avail those schemes that are launched by the government. Across Great Britain, various types of jobs keep on closing resulting in the crisis as well as unemployment too.
In between that, people who are still having their jobs are very much willing to give up their service. They will not take any type of leave for earning their salary amount. In doing so, they will be stabilizing their financial condition. Those people who will take unpaid leave, their condition will become much worse than ever.
There are certain warning measures given by the government that will eventually target the expected crisis of finance. To receive certain help packages from the government, average, normal as well as self-employed people are rushing out. Naturally, in this type of dangerous situation, they have the fear in their mind whether the UK government would withdraw the help packages.
Crisis in Family Income
After the emergence of Coronavirus, people who are employed are really facing problems regarding their family income. On an average basis, they are really losing more than 12 % of their net family income. The situation is becoming more and more critical because they had to give up their 53% on income to the rescue measures.
On the other hand, the people who are self-employed, are on the verge of losing their 14% of their income from the family. These people can relax because the government has previously declared 44% of help. But, the percentage is much less than before.
From economic research, we have seen that people under a lot of mental and financial pressure are approaching the United Kingdom government with various types of schemes related to work. The only reason for this type of activity is for supporting self-employment with generosity.
Research work also suggests that some people will eventually fall for these gaps. The people might be those who have high income with a low propensity to consume. Some self-employed people also fall under this category. Speaking about the other people, some parts of their overall earnings, the government will cover-up.
Recent Situation of Universal Credit (UC)
For the last couple of years, Universal Credits has been on the verge of controversy. The real fact is that people all over the United Kingdom will eventually be able to see its peak performance over the next couple of months. It will be the ultimate test as it generally delivers the standard of living to an enormous number of people.
For making the UC ready for the revolution, the UK government must inspire as well as encourage the people to claim more schemes that are ready to support their family as well as the income. The UC must extend furthermore to the middle-level income, directly to household income and expenses.
Those people who are still working, they must get their payments as quickly as they can. The government cannot afford late payments just because of the financial crisis going on. From the deadly jaws of Coronavirus, the UC must show everyone that the UK will cope with this critical situation very well. For this purpose, UC will have to play a very important role in fighting the economic crisis. This struggle will not only help the people of the UK to stabilize their financial situation but also motivate them to live happily. <