Citizens Advice Scotland joins calls job retention scheme to be continued

There are more calls for the UK Government’s job retention scheme to be extended – this time from Citizens Advice Scotland.

A new survey by the advice charity revealed many Scots still have “significant worries” about paying their bills.

It found that almost two out of five Scots were concerned about their incomes.

Research for Citizens Advice Scotland found 38% were worried about this, with almost a fifth (19%) concerned about affording their mortgage payments.

Meanwhile 21% were concerned about being able to pay their rent, with a similar amount (22%) concerned about utility bills.

There were also 22% who were worried about council tax payments, and 27% who were worried about meeting ongoing debt repayments.

With businesses across Scotland closed as a result of the coronavirus lockdown, figures showed that, by the end of June, some 736,500 workers had been furloughed.

First Minister Nicola Sturgeon said on Wednesday that it made “no sense” to end the scheme, which was introduced by Chancellor Rishi Sunak as part of the UK Government's response to the pandemic.

As it stands the job retention scheme is due to close at the end of October, although Ms Sturgeon insisted: “This pandemic will not end next month, so it stands to reason the economic impact of the pandemic will not end next month either, so we continue to urge the UK Government to maintain support for jobs and employment for as long as that is needed.”

Citizens Advice Scotland social justice spokeswoman Mhoraig Green said: “That there is such widespread concern over job security over the next year shows the size and scale of the economic storm people in Scotland are facing as a result of the pandemic.

“Concerns over job security and incomes are leading to significant worries over key bills and the cost of living, with one in five people worried about losing their home because they can't afford their rent or mortgage repayments.

“All of this means it's vital we see action from policy-makers.

“The UK and Scottish Governments, as well as local government and industry, took swift and decisive action at the start of lockdown to ensure people were protected.

“The furlough scheme has been so crucial in this, but it is now set to wind down in October along with other protections.

“Our concern is that many people will face new levels of financial insecurity which will see poverty levels soar.

“That's why Citizens Advice Scotland believes the furlough scheme should be extended by the UK Government, with flexibility to account for the relative reliance on key sectors and industries in different parts of the UK.”

Pollster Mark Diffley, who carried out the research said it showed many people had “ongoing financial concerns”.

He added: “Although we have not returned to levels of worry felt when the pandemic first appeared in the spring, around one in five of us are still concerned about core aspects of our everyday financial commitments.”

He continued: “Looking to the future, it is clear that many Scots are fearful of their financial futures.

“More than a third (36%) of those currently working on the government's furlough scheme are concerned about the security of their job in the next 12 months, while one on five (19%) are fearful of losing their home as a result of falling behind in rent or mortgage payments.”

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