‘The Tories have torn apart the social security safety net’

Newly released analysis of official OEDC (Organisation for Economic Cooperation and Development) data shows the UK has the worst safety net for the unemployed, significantly lagging its European counterparts.

After being unemployed for two months, Britain provides citizens with support that equates to just 17 percent of their previous in-work income. By contrast, Belgium provides 90 percent worth of support. Luxemburg stands at 85 percent, Norway and Denmark at 78 percent, and Iceland, Switzerland, and Sweden at 75, 74, and 72 percent respectively. The Netherlands, France, Germany, Finland, Austria, and Ireland, also provide people who are unemployed with significantly more generous financial support than Britain.

The UK’s replacement rate also falls shorter than other European countries for benefits after one year and two years of unemployment. Additionally, the analysis found that Britain had the worst unemployment benefits among its European counterparts for every year this century.

The analysis was carried out by the SNP. In response to the findings, SNP MP David Linden, who is the party’s social justice spokesperson, said: “Scotland is one of the wealthiest countries in the world but too many people are struggling to get by as a direct result of damaging Westminster cuts – showing why independence is key to delivering real change and a fairer society.

“The Tories have torn apart the social security safety net – and the pro-Brexit Labour Party is making it worse by admitting it would keep the most damaging Tory cuts, like the two-child cap and bedroom tax.”  

Recent figures by the Office for National Statistics (ONS) showed that the UK’s unemployment rate had risen above expectations. In the three months to May, the rate of unemployment rose to 4 percent, up from 3.8 percent in the previous three months.

Average regular wages, meanwhile, excluding bonuses, were 7.3 percent higher in the three months to May, the same as they were during the previous three months, and the joint highest since 2001 when records began. Though with inflation rising, the wage rise marks real terms pay cut. As ONS director of economic statistics Darren Morgan said: “Due to high inflation, however, the real value of weekly earnings are still falling, although now at its slowest rate since the end of 2021.”

Shadow work and pensions secretary, Jonathan Ashworth, described the figures as “another dismal reflection of the Tories’ mismanagement of the economy over the last thirteen years.”

“Britain is the only G7 country with a lower employment rate than before the pandemic and real wages have fallen yet again – just as more and more families feel the devastating impact of the Tory mortgage bombshell.

“Labour’s mission is to secure the highest sustained growth in the G7. We will create good jobs across every part of the country and our welfare reform and job support plan will get Britain working again,” said Ashworth.

Gabrielle Pickard-Whitehead is a contributing editor to Left Foot Forward

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