Coronavirus Job Retention Scheme

(asked on 20th April 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he has plans to expand furlough payments to cover a proportion of (a) performance-related pay and (b) sales commission up to a cap.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 1st May 2020

The objective of the Coronavirus Job Retention Scheme is to enable employers to continue to keep people in employment. To achieve this, the grants compensate employers for the payments that they are contractually obliged to make, in order to avoid the need for redundancies. Covering discretionary payments would go beyond the objectives of the scheme. Full guidance on how to calculate 80% of wages can be found at: www.gov.uk/guidance/work-out-80-of-your-employees-wages-to-claim-through-the-coronavirus-job-retention-scheme

For some employees, the pay in scope for the grant will be less than the overall sum they usually receive. The Government is also supporting those on low incomes who need to rely on the welfare system through a significant package of temporary welfare measures. This includes a £20 per week increase to the Universal Credit standard allowance and Working Tax Credit basic element, and a nearly £1 billion increase in support for renters through increases to the Local Housing Allowance rates for Universal Credit and Housing Benefit claimants. These changes will benefit all new and existing claimants. Anyone can check their eligibility and apply for Universal Credit by visiting www.gov.uk/universal-credit.

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