Question to the Department for Education:

To ask the Secretary of State for Education, what discussions he has had with the Chancellor of the Exchequer on the effect on supply teaching staff of rules requiring employers to meet (a) national insurance and (b) pension costs for furloughed staff.

Department officials continue to engage with their counterparts across Government to co-ordinate the Government’s response to COVID-19.

If supply staff employed via employment agencies are unable to work due to COVID-19, their employment agency can place them on furlough and use the Coronavirus Job Retention Scheme (CJRS) to claim for 80% of their wages, including during school holiday periods, provided that the eligibility criteria are met, further details can be found here: https://www.gov.uk/guidance/check-which-employees-you-can-put-on-furlough-to-use-the-coronavirus-job-retention-scheme.

From 1 November 2020 employers must pay employer National Insurance contributions (NICs) and pension contributions for the hours the employee is on furlough. Employer NICs and pension contributions are the only required contributions under the extension to the CJRS. For an average claim, this accounts for just 5% of total employment costs or £70 per employee per month.

This is a fair way to ask employers to contribute because it protects lower paid workers by limiting the cost to employers of lower paid workers. Indeed, an early assessment of CJRS claims suggested around 40% of employees using the scheme are below the NICs and pensions threshold and will therefore have no employer costs in the CJRS. Furthermore, many small employers can benefit from the Employment Allowance for support with their NICs bill.

The Government has provided additional financial support for those who are unable to work because they have COVID-19, or are self-isolating, which is outlined in the 'Coronavirus (COVID-19): what to do if you’re employed and cannot work' guidance which can be found here: https://www.gov.uk/guidance/coronavirus-covid-19-what-to-do-if-youre-employed-and-cannot-work?priority-taxon=5ebf285a-9165-476c-be90-66b9729f50da#if-someone-you-live-with-has-symptoms-of-coronaviru.