To ask Her Majesty’s Government, further to the report published by the TUC Working mums: Paying the price published on 14 January, what action they plan to take to support working parents and those with caring responsibilities to access the Coronavirus Job Retention Scheme who (1) cannot work due to the latest school closures and (2) were denied or not offered furlough.
My Lords, the furloughing of staff is a voluntary arrangement entered into at the employer’s discretion and agreed by employees. It is not for the Government to decide whether a firm should put its staff on furlough. However, the eligibility criteria are clear that an employee is eligible if they are unable to work, including at home, due to caring responsibilities resulting from Covid.
My Lords, I am sure it will not be lost on noble Lords that today is Martin Luther King Jr Day. It is in his spirit of fighting for social and racial justice that I make a passionate plea to the Minister that we confront head-on the findings from the latest TUC report that so many parents and carers—particularly mothers—often working for low pay, many of whom are black, Asian and minority ethnic, are being denied furlough. Can we have temporary legislation for these parents to be afforded furlough during this difficult time or, at the very least, give a clear direction to employers about their obligation? Like many, I am also very worried about the stress and impact on mental health this is causing for parents and their children, which will only get worse if we do nothing.
To ask Her Majesty’s Government, further to the end of the Coronavirus Job Retention Scheme, what assessment they have made of its impact on black, Asian and minority ethnic communities in the United Kingdom.
My Lords, people from a minority ethnic background can be more vulnerable to unemployment than those from a white background, although rates vary considerably by ethnicity. The Coronavirus Job Retention Scheme and other government support schemes have helped protect against rising unemployment during the pandemic. So far, the scheme has helped 1.2 million employers across the UK furlough 9.6 million jobs, protecting people’s livelihoods.
My Lords, in August, the Government were made acutely aware that a disproportionately high number of black, Asian and minority ethnic workers have been furloughed or made redundant. With the main job retention scheme coming to a close, we can now expect another spike in BAME redundancies. Can the Minister tell me whether the Government undertook a BAME impact assessment before making these changes? Also, despite repeated calls, including a petition signed by 140,000 people, why do we still do not have a Covid-19 race equality strategy?
My Lords, when designing the Coronavirus Job Retention Scheme and its next steps, the Government undertook an analysis of how the policies were likely to affect individuals sharing protected characteristics, in line with our public sector equality duties. Of course, the Coronavirus Job Retention Scheme comes to an end at the end of October. It is being replaced by the Job Support Scheme, which will continue to support jobs during the pandemic.
Black and minority ethnic youths are twice as likely to be unemployed as their white counterparts and 48% more likely to be on zero-hours contracts. What plans do the Government have to mitigate this already shocking data, which could get very much worse?
I thank the noble Lord for his question. We are, of course, extremely concerned about the impact of Covid on employment. That is why the job retention scheme applies to all people on the PAYE system, including those on zero-hours contracts. We have also made the welfare system more generous during this period, including adding to the standard allowance on universal credit.