Asked by: Mick Whitley (Labour - Birkenhead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to his oral statement of 5 November 2002, on Economy Update, what steps he is taking to ensure that people not eligible to access the (a) Coronavirus Job Retention Scheme and (b) Self-Employment Income Support Scheme will have access to financial support in the period leading up to March 2021.
Answered by Jesse Norman
Throughout the pandemic, the Government’s priority has been to protect lives and livelihoods. Since the start of the pandemic the Government has provided support for people, businesses and public services totalling an estimated £200 billion.
Beyond the extension of the Coronavirus Job Retention Scheme and
Self-Employment Income Support Scheme, to support individuals further the Government has implemented a £20 per week increase to the Universal Credit standard allowance and Working Tax Credit basic element until the end of March 2021. This means that for a single Universal Credit claimant (25 or over), the standard allowance will increase from £317.82 to £409.89 per month.
The £20 per week uplift is one part of a package of temporary welfare measures, which also includes the suspension of the Universal Credit Minimum Income Floor in order to support self-employed people on low incomes, and increases to the Local Housing Allowance rates for Housing Benefit and Universal Credit, which mean over 1 million households who rent privately will gain an average of £600 per year.
The Government has also given local authorities an additional £500 million to support the most vulnerable people in society, who may struggle to meet their council tax payments this year. The Government has requested that local authorities use the Hardship Fund grant to provide all recipients of working age local council tax support (LCTS) during the financial year 2020-21 with a further reduction in their annual council tax bill of £150. This funding is in addition to the £3.4bn which Local Authorities already spend on LCTS schemes each year, benefiting about 3.8 million people.
The Government is committed to supporting individuals financially through this difficult time and has put in place a comprehensive package of support for those told to self-isolate, extending Statutory Sick Pay (SSP) so that employees can claim it if they are asked to self-isolate, and changing the rules so that SSP is payable from day one rather than day four. In addition, people who are instructed to self-isolate by NHS Test and Trace and are on low incomes, unable to work from home and will lose income as a result, may be entitled to a payment of £500 from their local authority.
The Government continues to keep policies under review, and it will continue to provide a comprehensive economic support package as public health measures change.
Asked by: Mick Whitley (Labour - Birkenhead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department plans to introduce sector-specific financial support for the automotive industry.
Answered by Kemi Badenoch - President of the Board of Trade
Government has announced unprecedented support for businesses which have benefited all sectors in every part of our United Kingdom. There has been widespread use of the Government’s support schemes in the automotive sector, including the Job Retention Scheme and tax deferrals. To support viable UK employers who face lower demand due to COVID-19, and to keep their employees attached to the workforce, the government will be introducing a new Job Support Scheme from 1 November 2020.
Government and industry have committed around £800 million since 2013 through the Advanced Propulsion Centre, to research, develop and commercialise the next generation of low carbon technologies and to keep the UK at the cutting edge of low carbon automotive innovations.
The government will continue to engage with businesses and representative groups with the aim of ensuring that support provided is right for the automotive sector and for the economy as a whole.
Asked by: Mick Whitley (Labour - Birkenhead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential benefits to local economies of introducing sector-specific financial support for the automotive industry.
Answered by Kemi Badenoch - President of the Board of Trade
Government has announced unprecedented support for businesses which have benefited all sectors in every part of our United Kingdom. There has been widespread use of the Government’s support schemes in the automotive sector, including the Job Retention Scheme and tax deferrals. To support viable UK employers who face lower demand due to COVID-19, and to keep their employees attached to the workforce, the government will be introducing a new Job Support Scheme from 1 November 2020.
Government and industry have committed around £800 million since 2013 through the Advanced Propulsion Centre, to research, develop and commercialise the next generation of low carbon technologies and to keep the UK at the cutting edge of low carbon automotive innovations.
The government will continue to engage with businesses and representative groups with the aim of ensuring that support provided is right for the automotive sector and for the economy as a whole.
Asked by: Mick Whitley (Labour - Birkenhead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to make financial support available to people suffering long-term effects of covid-19 and who are unable to work as a result of their symptoms.
Answered by Jesse Norman
The Government has committed to an unprecedented package to support individuals affected by COVID-19 through this difficult time. This includes the introduction of the Coronavirus Job Retention and Self-Employment Income Support Schemes.
If an employee earns average weekly earnings of at least £120 per week, they will be eligible for Statutory Sick Pay (SSP) if they have been ill or self-isolating. SSP is paid by an employer for up to 28 weeks and may be paid to those unable to work as a result of long-term effects of COVID-19. The Government has also changed the rules so that SSP is now payable from day 1, not day 4, for COVID-19 cases.
Where an individual is not eligible for SSP or has received it for the maximum period, the Government provides a welfare safety net. According to OBR estimates, the Government has injected a further £9.3 billion into the welfare system to support individuals who are unable to work or on a low income. Those with a health condition which prevents them from working or preparing for work may be entitled to an extra amount of Universal Credit. In addition, individuals with sufficient National Insurance contributions may be entitled to “new style” Employment and Support Allowance (ESA) if they are incapable of work due to COVID-19.
Asked by: Mick Whitley (Labour - Birkenhead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what his Department has made of the potential merits of extending the Coronavirus Job Retention scheme and Self-Employment Income Support scheme for industries that are (a) not able to safely return to work and (b) experiencing sustained economic disruption as a result of the covid-19 pandemic; and if he will make a statement.
Answered by Jesse Norman
The Government has put in place a broad set of policies to support businesses and individuals during COVID-19, and the CJRS and SEISS are supporting millions of people.
The CJRS remains open until the end of October while the second and final round of SEISS claims has just opened for applications.
As the economy reopens, the Government must adjust its support to ensure people continue to get back to work, while protecting the UK economy and people’s livelihoods.
In the second phase of the Government’s response, the targeted Plan for Jobs will support jobseekers, protecting jobs and creating jobs.
Asked by: Mick Whitley (Labour - Birkenhead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of requiring employers who have furloughed employees through the Coronavirus Job Retention Scheme repay money to the Exchequer if they subsequently make redundancies.
Answered by Jesse Norman
The Coronavirus Job Retention Scheme (CJRS) is designed to protect jobs, and it has protected 9 million jobs to date.
While employers who make redundancies do not need to repay the CJRS grant they have already received, if an employee is made redundant during the period of furlough then future grant payments in relation to that employee will cease.
Employees who are dismissed due to redundancy and who satisfy certain qualifying conditions are statutorily entitled to a lump sum redundancy payment from their employer, based on their age, length of service and contractual weekly earnings, subject to a statutory upper limit.
New legislation will ensure that employers base an employee's redundancy pay (and other statutory rights including notice pay and compensation for unfair dismissal) on their normal pay, rather than their furlough pay (potentially 80% of their normal wage). This will ensure that where someone who had previously been furloughed does lose their job, they will receive their full entitlements.
Asked by: Mick Whitley (Labour - Birkenhead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what financial support will be available for people who are extremely clinically vulnerable and unable to return to work after 1 August 2020 because they cannot work from home and their workplace cannot be made covid-secure.
Answered by Jesse Norman
On 22 June, the Prime Minister announced that the Government will relax the current public health guidance for those identified as Clinically Extremely Vulnerable (CEV) to shield at home. This means from 1 August they will be able to return to work if they are unable to work from home, provided their workplace is COVID-safe.
It is important that this group continue to take careful precautions, and employers should do all they can to enable them to work from home where this is possible, including moving them to another role if required. Where this is not possible, the CEV should be provided with the safest on-site roles that enable them to maintain social distancing from others.
If employers cannot provide a safe working environment, the CEV will continue to have access to an unprecedented package of financial support. This is not limited to the Coronavirus Job Retention Scheme, but also includes the introduction of the Self-Employment Income Support Scheme and an increase in the generosity of welfare payments worth a further £9.3bn according to Office for Budget Responsibility estimates.
Asked by: Mick Whitley (Labour - Birkenhead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential effect of redundancies amongst maritime workers at (a) P&O Ferries and (b) Stena Line on the UK’s capacity to move (i) freight and (ii) passengers on international roll-on roll-off ferry routes during and after the covid-19 pandemic.
Answered by Kemi Badenoch - President of the Board of Trade
The Government recognises that the news regarding job losses at P&O and Stena will be distressing for employees and their families.
The Government has already announced a range of measures to support all businesses, including roll-on roll-off ferry operators, and we encourage all firms to draw on this unprecedented package of support.
In addition, on 24 April Government committed up to £35m to keeping freight flowing on critical routes into and across the UK.
Asked by: Mick Whitley (Labour - Birkenhead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department plans to allow public markets run by local authorities to apply for business rate relief in response to the covid-19 outbreak.
Answered by Jesse Norman
Guidance for local authorities on the application of this business rates holiday was published on 18 March and can be found at: https://www.gov.uk/government/publications/business-rates-retail-discount-guidance.
The Government has announced £1.6bn of additional funding to support local authorities in responding to the Covid-19 pandemic. This funding is intended to help local authorities address the pressures that they are facing across services.