Coronavirus Job Retention Scheme

Wendy Chamberlain Excerpts

Thursday 17th September 2020 Commons Chamber

[Wendy Chamberlain (North East Fife) (LD)]

I congratulate the hon. Member for North Ayrshire and Arran (Patricia Gibson) on securing this important debate. Last week’s Opposition day debate on the furlough scheme demonstrated that there is huge demand in all parts of the House for raising constituents’ cases, so we have a welcome further opportunity to do that today. Since March, we have all been receiving a huge amount of correspondence from constituents whose livelihoods have been affected by the pandemic. I wish to take a moment to pay tribute to my casework team, who were newly hired just as the pandemic hit and have done a fantastic job in getting up to speed and directing so many constituents to the different, varied and sometimes complex support schemes run by local authorities, the Scottish Government and the UK Government.

Across the whole of Fife nearly 30% of all employees were furloughed. That is a huge number and I give credit to the Treasury for its implementation of the scheme. It is an example of how pooling and sharing resources has allowed the prevention of huge job losses. We have already heard today that all this is put in jeopardy if the scheme ends next month unilaterally, and I re-echo the calls that have been made. I cannot stress enough how vital the scheme is to so many businesses in my constituency. But for all the good the furlough has done, the painful reality for a not insignificant minority of people is that they have missed out on the scheme, for reasons that are, in essence, arbitrary. I welcome the recognition of that in the motion.

For some, that reason is just a date. One of my constituents had not been in work, he started a new job on 29 February and the cut-off date meant he was ineligible for the scheme. He was let go from his job and there was no recent employer to rehire him. Another constituent was placed in a similar situation. She was switching employment just as covid-19 hit, and her new employer could not open the business because of the lockdown and so simply could not take her on. The rules of the job retention scheme were adjusted so that old employers could rehire those people caught in limbo, but that was a workaround, not a solution that is an any way meaningful. She was eligible for furlough but was not furloughed because her old employer refused to rehire her so that she could be furloughed, although that would have come at no cost to them. So she has missed out and instead has had to apply for jobseeker’s allowance.

Even for those who were furloughed the scheme has not always been perfect. One constituent, a childcare agency worker on a zero-hours contract, contacted me because the way furlough is calculated has meant that her regular full-time hours are not considered, and she has experienced an incredibly severe drop in earnings. That has meant an incredibly tough few months trying to survive on very little.

Those are three cases, but there are many more. For thousands of people in my constituency, this has been a difficult year. A lot of people who never thought they would be relying on our welfare system are now doing so because they did not meet arbitrary eligibility criteria and slipped through the gaps. It will now be clear to so many people that what is deemed as our “safety net” does not work. As we look to rebuild, I hope we will reflect on our welfare system and on whether it provides the right support for those who need it. I am increasingly convinced that a more substantial, universal safety net has to be the way forward.

[Mr Deputy Speaker (Mr Nigel Evans)]

To sit down at 2.45 pm, I call Jim Shannon.