Asked by: Mark Hendrick (Labour (Co-op) - Preston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to ensure that businesses are (a) lawfully claiming and (b) distributing funds received under the Coronavirus Job Retention Scheme.
Answered by Jesse Norman
The Coronavirus Job Retention Scheme forms part of a wider national effort to protect people’s jobs. Fraudulent claims put at risk the provision of public services and the protection of livelihoods. This could include employers claiming on an employee’s behalf and not then paying them what they are entitled to, asking employees to do work while on furlough, or making a backdated claim that includes times when workers were working.
As part of HMRC’s commitment to transparency and to deter fraudulent claims, they will publish information about employers who claim for periods starting on or after 1 December 2020. This information can be found at https://www.gov.uk/government/publications/employers-who-have-claimed-through-the-coronavirus-job-retention-scheme.
Employees can play a vital role by reporting fraudulent claims to HMRC, via their online fraud reporting tool: https://www.gov.uk/government/organisations/hm-revenue-customs/contact/customs-excise-and-vat-fraud-reporting.
Compliance investigations are now under way, and HMRC are checking claims made through this scheme. Payments may be withheld or need to be repaid in full to HMRC if the claim is based on dishonest or inaccurate information or found to be fraudulent.
HMRC have made clear that they will not hesitate to act on reports of abuse, and the first arrest made in relation to CJRS fraud was on 8 July 2020.
Asked by: Mark Hendrick (Labour (Co-op) - Preston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to ensure that employees supported through the Coronavirus Job Retention Scheme are paid the national minimum wage.
Answered by Jesse Norman
Individuals are only entitled to the National Living Wage (NLW)/National Minimum Wage (NMW) for the hours they are working or treated as working under the NLW/NMW rules.
Therefore, under flexible furloughing, furloughed workers will be paid NMW for any hours the individual spends working. For hours not worked, i.e. time furloughed, workers will be paid the lower of 80 per cent of their salary, or £2,500. This amount – for hours not worked – is the amount the employer can claim for through the CJRS.
If they wish, employers can top up these payments voluntarily.
If workers are required to complete training courses during the hours they are furloughed, then they must be paid at least the appropriate 2020/21 NLW/NMW for the time spent training, even if this is more than the 80 per cent of their monthly earnings that will be subsidised. Any training should be carried out in line with the latest public health guidance.
Asked by: Mark Hendrick (Labour (Co-op) - Preston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the potential merits of taking steps to encourage companies to place parents on furlough while schools are closed as a result of the covid-19 national lockdown that has been in place since January 2021.
Answered by Jesse Norman
The Coronavirus Job Retention Scheme is available to the employers of anyone who is unable to work, including from home, due to caring responsibilities arising from COVID-19, such as caring for children who are at home as a result of school and childcare facilities closing. However, the furloughing of staff through the CJRS is a voluntary arrangement, entered at the employers’ discretion and agreed by employees. It is not for the Government to decide whether an individual firm should put its staff on furlough.
In the most recent national lockdown, the Government has chosen to keep early years settings open for all children. Vulnerable children and children of key workers can also continue to attend out-of-school settings, for example breakfast clubs and after-school clubs. Households with anyone aged under 14 can form a ‘childcare bubble’. This allows friends or family from one other household to provide informal childcare.
Asked by: Mark Hendrick (Labour (Co-op) - Preston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what long term support he plans to make available to women who leave the workforce to (a) have children and (b) carry out other caring duties.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The Government is committed to supporting women who want to leave to the workforce in order to carry out childcare or other caring duties. Women who take leave from work to look after children are entitled to up to 52 weeks of leave are available, 39 weeks of which are paid – this is the longest maternity leave among all the OECD countries.
In order to support mothers in the longer term, the Government provides significant support for parents to help with the costs of childcare. This includes 15 hours of free childcare for disadvantaged 2 year olds; 15 hours for all 3-4 year olds; and a further 15 hours free for eligible working parents of 3 and 4 year olds. Tax Free Childcare provides eligible working parents with support worth 20% of their childcare costs, up to a cap of £2000 per child aged under 12 per year (or £4000 per child aged under 17 per year for disabled children). Parents are also entitled to claim Child Benefit.
The Government recognises and is committed to supporting people who give up the opportunity of full-time employment in order to provide regular and substantial care through Carer’s Allowance. The rate of Carer’s Allowance was increased in early April as part of the annual uprating process. Carers may be able to receive other support from the benefit system, including through Universal Credit, which includes an additional amount for carers at the rate of £162.92 per monthly assessment period. Carers receiving Universal Credit may also benefit from the extra £1040 that has been added to the standard allowance in Universal Credit this financial year.
Asked by: Mark Hendrick (Labour (Co-op) - Preston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential merits of adopting a four-day working week.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
Enforcing a four-day working week would likely increase business costs at a time where we should be supporting businesses. We need to help businesses by creating and protecting jobs, not adding to their costs. This is why the Government has extended a number of Covid support schemes, such as the Coronavirus Job Retention Scheme, through the winter.
The UK’s flexible labour market allows employers to independently agree working arrangements with their workers. Enforcing a four-day working week would take that choice away from both workers and employers.
Asked by: Mark Hendrick (Labour (Co-op) - Preston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to ensure that employees on the Self-Employment Income Support Scheme are paid the national minimum wage.
Answered by Jesse Norman
The Self-Employment Income Support Scheme (SEISS) is available to self-employed individuals who have been affected by reduced demand or have been unable to trade due to COVID-19, which they believe will lead to a significant reduction in their trading profits. Those receiving the SEISS cannot receive the national minimum wage as minimum wages do not apply to the self-employed.
The SEISS has provided and will continue to provide substantial support to those self-employed people who meet the eligibility criteria. The first SEISS grant supported 2.7 million individuals with claims totalling £7.8 billion. A further £5.9 billion has been claimed through the second SEISS grant.
The third SEISS grant will cover the three-month period from November 2020 until January 2021. This will be a taxable grant calculated at 80 per cent of three months’ average monthly trading profits, paid out in a single instalment and capped at £7,500 in total. Combined with up to £14,070 worth of support for each individual from the first and second grants, it makes the SEISS one of the most generous schemes for the self-employed in the world.
Moreover, the SEISS continues to be just one element of a substantial package of support for the self-employed. The Universal Credit standard allowance has been temporarily increased for 2020-21 and the Minimum Income Floor relaxed for the duration of the crisis, so that where self-employed claimants' earnings have fallen significantly, their Universal Credit award will have increased to reflect their lower earnings. In addition to this, the self-employed may also have access to other elements of the package, including Bounce Back loans, tax deferrals, rental support, mortgage holidays, self-isolation support payments and other business support grants.
Asked by: Mark Hendrick (Labour (Co-op) - Preston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of providing support to newly self-employed individuals who have been ineligible for covid-19 support to date.
Answered by Jesse Norman
The Government has looked carefully at ways to support groups such as the newly self-employed, and acknowledges that it has not been possible to support everyone as they might want. The practical issues that prevented the Government from being able to include the newly self-employed in 2019-20 in the original Self-Employment Income Support Scheme (SEISS), namely that HM Revenue and Customs (HMRC) will not have access to their self-assessment returns in order to verify their eligibility, still remain.
The Government continues to work closely with stakeholders to explore how it can support different groups. The Government has engaged with various proposals but has not yet found a way to overcome the fundamental issue of safeguarding against fraud and abuse.
However, newly self-employed individuals who are ineligible for SEISS may still be eligible for other elements of the support available. The Universal Credit standard allowance has been temporarily increased for 2020/21 and the Minimum Income Floor relaxed for the duration of the crisis, so that where self-employed claimants' earnings have fallen significantly, their Universal Credit award will have increased to reflect their lower earnings. In addition to this, they may also have access to other elements of the support package, including Bounce Back loans, tax deferrals, rental support, mortgage holidays, self-isolation support payments and other business support grants.
Asked by: Mark Hendrick (Labour (Co-op) - Preston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of providing free access to (a) tampons and (b) sanitary pads in England.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The Government is committed to tackling period poverty, and DHSC ministers are working with officials to develop a women’s health strategy.
Vital sexual and reproductive healthcare services have been maintained during the pandemic, including via online services, and NHS England announced in March 2019 that it will offer period products to every hospital patient who needs them. Last year we introduced the period product scheme to provide free period products for all learners who need them. This scheme will continue into 2021.
At Budget 2020 the Government announced that from January 2021, there will be no VAT charged on women’s sanitary products. And in the meantime, the £15m Tampon Tax Fund allocates the funds generated from the VAT on sanitary products to front line projects that directly improve the lives of disadvantaged women and girls.
Asked by: Mark Hendrick (Labour (Co-op) - Preston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the potential merits of implementing a universal basic income.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
There are fundamental problems with the realities of a Universal Basic Income. Providing sufficient support through a UBI would require both a significant reduction in other public spending and an increase in taxation. A flat rate UBI would also not account for the additional needs and costs faced by some and could markedly increase inequality.
We are focussed on helping people get into work, making up to £30 billion available through our Plan for Jobs and have supported those on the lowest incomes through the pandemic by investing an additional £7.4 billion in the welfare system this year.
Asked by: Mark Hendrick (Labour (Co-op) - Preston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what fiscal steps he plans to take to help protect high streets from online competition during the covid-19 outbreak.
Answered by Kemi Badenoch - President of the Board of Trade
The Government understands that this is a very challenging time for the UK’s retail sector, and recognises that high street retailers have been disproportionately impacted by the pandemic.
The safe re-opening of our high street retailers is the most effective way we can support businesses. England has now moved back into a regional, tiered approach, and essential and non-essential retail, including indoor and outdoor markets and car boot sales are open in all three tiers. The Government has also extended opening hours in the run up to Christmas and during January - helping to make socially distanced shopping easier and safer.
The Government has also established the Reopening High Streets Safely Fund. The £50 million fund is for councils across England to support their local high streets get safely back to business. This fund builds on longer-term funds already in place to support their revival and boost their economic fortunes including the Future High Streets and Towns Funds.
This is in addition to the wide-ranging support the Government has already delivered: protecting high street jobs through the CJRS which has been extended until March; and protecting businesses with cash grants, Government backed finance through loan schemes, ‘Pay as You Grow’ long-term repayments options, a VAT deferral for up to 12 months, a 12-month business rates holiday; and a moratorium on evictions to protect commercial tenants.