Coronavirus Job Retention Scheme

Liz Twist Excerpts

Thursday 17th September 2020 Commons Chamber

[Liz Twist (Blaydon) (Lab)]

I am glad to be able to take part in this important debate. Yesterday, at Prime Minister’s questions, the Prime Minister proclaimed:

“We need to get people off furlough and into work”.—[Official Report, 16 September 2020; Vol. 680, c. 311.]

But he said that the scheme is not “the right way” to do that. Yet, he also stated that the Government will continue to apply the maximum creativity in putting their arms around the workforce in the UK. This contradiction is forcing millions into crippling uncertainty. The Government’s short-sighted decision to withdraw support for jobs and businesses across the UK will be nothing short of disastrous for people, for businesses and for jobs. We all know that. We have warned them time and again that this approach will result in job losses and hardship for ordinary people who are just trying to get through the coronavirus crisis.

According to IPPR research, 2 million viable jobs are at risk. Other countries have extended their schemes, why cannot we? In fact, we should. I am not arguing that the furlough scheme should be carried on just as it is. I am not arguing for a one-size-fits-all approach to job retention and I am certainly not asking the Government to throw money at every industry. What we need is a flexible, targeted support scheme beyond the autumn to save millions of people in vulnerable sectors from the jobs crisis. To avoid this inevitable jobs catastrophe, we need some key actions and changes to the furlough scheme. We need to expand part-time working and reward employers who give people hours rather than cut jobs. We need to provide training and support for those who cannot come back full time. We need to target sectors most in need, including retail, which is a major employer in my constituency of Blaydon and already suffering. We need to target hospitality and other people hit by local lockdowns. We need to provide certainty for workers and businesses, but, instead, what have we got? We have the job retention bonus, which is a scheme that will see taxpayers’ money going into businesses that were going to bring back workers anyway. My constituents do not need a bonus, they need a lifeline.

Things will only get worse if the Government continue with their plans to strip people of that lifeline shortly. Earlier this week, the north-east chamber of commerce said that it knows that the winding down of the job retention scheme is likely to lead to significant redundancies in the months ahead. The continued rise in the claimant count in my constituency in the north-east is an early indicator of that. Many of those people who are jobless and claiming at the moment are in the 18-to-24 age group. The crisis has had an unequal impact on young people in the north-east.

We know as well that some people have got on the job retention scheme as it is coming to an end, but there are other people who have been excluded, who have fallen through the cracks. So many businesses in my constituency tell me that they are not able to claim grants and they are not able to furlough themselves. These are not rich business people. They are not fat cats. They are people who are just working hard to make ends meet and to provide businesses and employment in the constituency. I hope that the Government will think again and consider extending the furlough scheme, but in a new form, which better reflects the needs of the people. That will give people in my constituency—both employees and entrepreneurs—a chance to survive.