Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the effect of the 30 October 2020 cut-off date for furlough under the Coronavirus Job Retention Scheme on people who started new jobs after that date.

The Coronavirus Job Retention Scheme (CJRS) was extended on 31 October. For an employee to be eligible for the extension, their employer must have made a PAYE Real Time Information (RTI) submission to HMRC, notifying a payment of earnings for that employee, between 20 March and 30 October 2020. The 30 October cut-off date is necessary and allows as many people as possible to be included by going right up to the day before the announcement, balancing the risk of fraud that existed as soon as the scheme became public. Extending the cut-off date further would have significantly increased the risk of abuse, because claims could not be confidently verified against the risk of fraud by using the data after this point.

The Government understands that the new restrictions are challenging for some businesses. The Chancellor has announced further support, including a new one-off grant of up to £9,000 to support businesses in England which are legally required to close. This comes in addition to the existing monthly grants for closed businesses of up to £3,000 per month. Local authorities will also receive an additional £500m, to a total of £1.6bn, of discretionary funding to allow them to support their local businesses.

The CJRS is not the only support available for employees. The Government has boosted the generosity of the welfare system by £7.4bn in 2020-21 including through a temporary £20 a week increase in the Universal Credit standard allowance and Working Tax Credit basic element.