Covid-19: Economic Package

Lord Taylor of Goss Moor Excerpts

Wednesday 13th May 2020 Lords Chamber

[Lord Agnew of Oulton]

My Lords, we have improved the terms of universal credit since this crisis began by increasing payments by £20 a week. We have seen 1.6 million claims since the beginning of the crisis, and all new and existing claimants will benefit from the increased generosity of these payments.

[Lord Taylor of Goss Moor (LD)]

Given that the Government have clearly not finalised the scheme as they cannot tell business how much they will contribute, will the Minister ensure that his colleagues take account of two figures that might cause perverse consequences? One is that individuals who need to be shielded and therefore cannot work, even if the business has work for them, are currently eligible for the furlough scheme. Clearly it is important that that continues, but it would be unreasonable and perverse if businesses found that they were financially advantaged by putting those people on statutory sick pay or even making them redundant when they cannot work. Businesses are being asked to support people in that situation, and it is important that they are fully protected on the furlough scheme cost. Similarly, there are businesses and charities that are not allowed to open by the Government and may still not be allowed to open. If they are not allowed to take people into employment, surely it is right that they should be fully covered for the cost of the furlough scheme, for the risk is that these businesses, which are bleeding money, will be forced to make people redundant.

[Lord Agnew of Oulton]

My Lords, my right honourable friend in his Statement yesterday extended the existing terms of the furlough scheme until the end of July. I think we will have better knowledge of the disease and our ability to contain it by then, but I take on board the noble Lord’s comments and I will take them back to my colleagues in the Treasury.