Kickstart Scheme

Debate between Thérèse Coffey and Stephen Farry

Thursday 3rd September 2020 Commons Chamber

[Dr Coffey]

My hon. Friend is right; the future jobs fund did have some good achievements, and we have learned from what worked well and what did not work so well. The main thing I would point out is that this is a much bigger programme with a much wider range of involvement and, even if some of that is through an intermediary, every organisation can easily get involved. We have simplified the criteria. We are still making sure that these are new additional roles, but it is important that we try to get some of these placements under way. I am sure that we will have some very lively kickstarters starting their new jobs before the end of the year.

[Stephen Farry (North Down) (Alliance) [V]]

This is a very welcome scheme, but it does not apply to Northern Ireland. Under devolution, we have the opportunity to develop a local scheme with a Barnett consequential; however, it was only this morning that our Department for Communities indicated its intention to do so. Can the Secretary of State confirm that her officials are willing to help Northern Ireland to develop its response?

[Dr Coffey]

I was in Northern Ireland last week meeting senior people from the Department for Communities as part of a fact-finding mission. Our officials are in regular contact, but the hon. Gentleman is absolutely right that this is a devolved matter. If the Department for Communities would like our help as part of the mutual relationship that we already share, we would be happy to support, but it is important to state that this is devolved, and we absolutely respect that.

Covid-19: DWP Update

Debate between Thérèse Coffey and Stephen Farry

Monday 4th May 2020 Commons Chamber

[Dr Coffey]

My hon. Friend will know, having been an accountant, that a variety of people will potentially receive dividends from a company, and it is not currently possible for Her Majesty’s Revenue and Customs to know whether somebody has given this to themselves in lieu of a salary or whether it is a payment to an investor. It is a different situation where people have chosen to finance their income from the business in that way, and he will be aware that the rate of tax on paying dividends is 7.5%, once someone goes above the dividends allowance. How people who are self-employed through a normal PAYE scheme would pay aspects of national insurance and tax directly is quite different. The Treasury, in devising the scheme, has sought to try to identify as many people as possible it could help, and achieving that for 95% of self-employed people is a pretty good outcome.

[Stephen Farry (North Down) (Alliance) [V]]

There is growing support for a recovery universal basic income, and it is being considered in other parts of the world. I would dispute what the Secretary of State has said about the costings, and stress to her that it can be supported through wider changes to the taxation system. Given the current cliff edge on the job retention scheme, the danger of vast redundancies, pressures on UC and the need to inject spending into the recovery to kick-start recovery, will she at least urgently work with the Treasury to explore that option?

[Dr Coffey]

No, I will not, and I have already set out why I do not think a universal basic income is the right approach. The hon. Gentleman is a Northern Ireland Member and will be aware that responsibility for welfare is devolved, so if he wanted he could lobby the Northern Ireland Executive, and they might be able to devise a scheme that they think is more appropriate locally.