Asked by: Jeremy Wright (Conservative - Kenilworth and Southam)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Plan for Jobs, published in July 2020, if he will extend (a) eligibility for the £1,000 bonus to employers who re-employ new starters who were not retained during the covid-19 outbreak and (b) an additional £1,000 bonus to those new starters directly.
Answered by Jesse Norman
Further information on the Bonus has been published at the end of July, including the eligibility criteria. Full guidance will be published by the end of September. Regarding labour retention and new starters, the relevant criteria is that the employee must have been continuously employed until 31 January 2021 and still be employed by the same employer as of 31 January 2021; and, not be serving a contractual or statutory notice period, that started before 1 February 2021, for the employer making a claim.
The Government’s comprehensive response to the COVID-19 outbreak ensures that there is a wide range of support available for those who may have not been retained by their employers. These include a £1,000 a year increase to the Universal Credit standard allowance and Working Tax Credit basic element, and a nearly £1 billion increase in support for renters through increases to the Local Housing Allowance rates for Universal Credit and Housing Benefit claimants.
Asked by: Jeremy Wright (Conservative - Kenilworth and Southam)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will extend the (a) phase-out start date from August to October 2020 and (b) scheme end date from October to December 2020 of the Coronavirus Job Retention Scheme for the conferencing and exhibitions sector in acknowledgement of the semi-easing of covid-19 lockdown restrictions being permitted for that sector from October 2020.
Answered by Jesse Norman
After eight months of the CJRS, the scheme will close in October.
The CJRS is a temporary scheme and the Government must ensure that people can get back to work when it is safe to do so and get the UK economy up and running again.
It would be very challenging to target the CJRS to specific sectors in a fair and deliverable way, and it is not clear that this is the most effective or sensible way to provide longer term support for those sectors most affected by coronavirus.
It would also be difficult to target the CJRS at specific sectors without creating distortion, particularly as some firms work across multiple sectors. Other business support measures can provide support to specific firms.
Asked by: Jeremy Wright (Conservative - Kenilworth and Southam)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of amending the terms of the Coronavirus Job Retention Scheme to enable employees to take part in employer sanctioned research and development work while furloughed.
Answered by Jesse Norman
The purpose of the Coronavirus Job Retention Scheme is to support people who would otherwise have been made redundant. To prevent fraudulent claims, the Government made it clear that individuals cannot work or volunteer for their organisation.
When on furlough, an employee can undertake training or volunteer subject to public health guidance, so long as they are not making money for their employer or any organisation linked or associated with their association, or providing services to their employer or any organisation linked or associated with their association.
Asked by: Jeremy Wright (Conservative - Kenilworth and Southam)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department made of the effect of the additional earnings disregards for Housing Benefits on tax credits before introducing the increase in the disability element of working tax credits that came into effect in April 2020.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
Section 41 of The Tax Credit Act 2002 requires Treasury ministers to undertake an annual review of the rates of Tax Credits and to consider whether they have retained their value.
The disabled worker element and severe disability element of Working Tax Credit were uprated by CPI for 2020/21 to £3,3220 and £1,390 respectively.
During the review of Tax Credit rates for 2020/21 no specific assessment was made of the effect of the Housing Benefit disregards when setting the disability element rates of Working Tax Credit.