Public Health Restrictions: Government Economic Support

Baroness Kramer Excerpts

Thursday 15th October 2020 Lords Chamber

[Baroness Penn (Con)]

My Lords, I watched the Urgent Question in the other place and do not agree with the noble Lord’s assessment of the answers given, but I will do my best to supplement them. It is not correct that there is support for track and trace in tier 3 areas only, as £300 million has been provided across all local authorities in England to support local track and trace measures. In addition, up to an extra £465 million has been allocated to further efforts. That includes money for areas in tier 1 with high infection rates, and tiers 2 and 3. I believe that my right honourable friend the Chief Secretary addressed underspend well, but the 67% that workers in closed businesses will receive from the Job Support Scheme will be supplemented, for those on low incomes, by an increase in their universal credit. That could take their incomes up to 88% of normal. I think I have delayed the noble Lord enough.

[Baroness Kramer (LD)]

My Lords, the Chancellor’s Job Support Scheme simply is not sufficient to protect jobs or businesses in the reality of the Covid second wave that we face today. It is also less generous than other schemes in Europe, as the Minister well knows. Will the Government now adopt two critical features of the German Kurzarbeit scheme; first, to step up the percentage of wages paid for lost hours, which in Germany goes to 70% and then to 80% the longer the period of lost hours or restricted furlough, and, secondly, continues with extra money for workers with children? Will this Government, like the German Government, pick up the full cost of the support, which, frankly, is beyond the capacity of many businesses to bear?

[Baroness Penn (Con)]

My Lords, in international comparisons, the UK is around the average for these kinds of support schemes. There are some schemes, like those in Germany, in which support goes up over time, but there are others in which the support is reduced over time. As I said to the noble Lord, Lord Tunnicliffe, the support for those on low incomes and those with children will increase as universal credit goes up and as incomes go down, and so those on low incomes will receive more than the 67%.