Coronavirus Job Retention Scheme

(asked on 29th January 2021) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether the Government plans to introduce a redress scheme for people who have been refused furlough by employers during the covid-19 outbreak because of claims that their employer is unable to afford national insurance and pension contributions.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 3rd February 2021

Since November, employers are only asked to cover National Insurance and employer pension contributions for hours not worked under the Coronavirus Job Retention Scheme (CJRS). This is lower than the previous level in September and October, and for an average claim accounts for just 5 per cent of total employment costs, or £70 per employee per month. Furthermore, many small employers can benefit from the Employment Allowance for support with their NICs bill, and, since March, businesses have received billions in loans, tax deferrals, Business Rate reliefs, and general and sector-specific grants. This support can be used by businesses to cover the costs of NICs and pension contributions, ensuring that they can continue to furlough their employees.

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