This policy proposal originated with my father who is a retired software engineer and who, along with my mother, lives relatively comfortably on income from their two state pensions. Based on concerns about the astronomical cost of COVID-19 on the UK economy and the burden this is likely to place on future generations, my father proposed the creation of a government-managed but voluntary COVID-recovery fund.
Increasingly, economists have begun to discuss a so-called “K” shaped recovery whereby those who, prior to the pandemic, had higher incomes, more secure material assets and worked in sectors that are more likely to be easily transferrable to the online, zoom-dominated world, have survived and even saved money during 2020-21 lockdowns. By contrast, those who, prior to the pandemic, had lower incomes, less secure material assets and worked in sectors that are less likely to be compatible with the online environment. In view of this unfortunate trend and the fact that (necessary) government spending to mitigate the worst effects of the pandemic have reached historic levels, the simple idea I am proposing on my fathers’ behalf is to create a COVID-recovery fund which would facilitate any citizen who feels able to pledge small amounts – perhaps anything from £1 to £100 for individuals and £100 to £1000 for companies or organisations – to go into a collective pot overseen by the government but which would go directly to individuals whose incomes or health had been directly affected by the coronavirus pandemic. By setting a minimum and maximum donation range for natural and legal persons respectively, the principle that this initiative would be aimed for as many as can afford it to give what they can, could be preserved and communicated. If implemented, the cost to the exchequer would be minimal, limited to the administration and management of collecting and distributing the fund. Of course, transparency as regards to the criteria for using such a COVID-recovery fund would be important to ensure legitimacy and public support. In keeping with the spirit of the proposal, I think it would be crucial for the government to commit to finance any administrative costs and any money voluntarily given to be used directly to address the needs created by the negative impacts of the pandemic.
Although sums collected are, perhaps, unlikely to alleviate the economic costs of the pandemic in any significant way, the voluntary nature of the initiative would reflect the collective spirit of the country having endured together through these very difficult months.
Thanks in advance for your consideration of this policy proposal. Honestly, I was inspired by my fathers’ desire to give something in the hope that it might alleviate the cost of COVID-19 for his children and grandchildren coming behind; perhaps you will be too.
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