From safety net to springboard: new study proposes modernised system of unemployment insurance for the UK

Unemployment insurance should be paid at 65 per cent of previous wages, up to a cap set at the median earnings of £2,260 per month, says The Inquiry, a collaboration between the Resolution Foundation (RF) and the Centre for Economic Performance (CEP) at the London School of Economics (LSE).

The researchers propose a cautious approach of initially paying unemployment insurance for at most three months, after which eligible lower-income workers could continue to receive support through Universal Credit. The proposed scheme is – perhaps surprisingly – fairly modest in cost, at only £0.4 billion per year in 2024-25 prices, covering 50,000 eligible workers.

Here's the study (pdf): https://economy2030.resolutionfoundation.org/wp-content/uploads/2023/09/From-safety-net-to-springboard.pdf