Agency Workers and Zero Hours Contracts: Coronavirus

(asked on 28th August 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what financial support is available to (a) workers on zero hour contracts and (b) agency workers who have been advised to continue to self-isolate during the covid-19 outbreak.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 8th September 2020

The Government has committed to an unprecedented package to support individuals through this difficult time. This includes the introduction of the Coronavirus Job Retention and Self-Employment Income Support Schemes, as well as injecting an additional £9 billion into the welfare system according to Office for Budget Responsibility estimates.

If an employee earns average weekly earnings of at least £120 per week, they will be eligible for Statutory Sick Pay (SSP) if they have been ill or self-isolating; this includes agency workers and those on zero-hour contracts. The Government is committed to supporting individuals financially through this difficult time. For that reason the Government has changed the rules so that SSP is now payable from day 1, not day 4 for COVID-19 cases.

It is important to note that SSP is a statutory minimum and employers, who are responsible for paying SSP, will often pay more than this. More than half of employees receive more than this when they are off sick so many people will not see any fall in income during their isolation period.

The welfare system is best placed to provide support for those not eligible for SSP. This group will benefit from changes to the welfare system to support the most vulnerable. These changes include a £20 per week increase to the Universal Credit (UC) 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 UC and Housing Benefit claimants.

In addition, the Department for Health and Social Care recently launched a trial for a new payment for those self-isolating in the highest risk areas in England. Starting with a trial in Blackburn with Darwen, Pendle and Oldham, individuals will be eligible if they are unable to work from home while self-isolating. This payment is in addition to the welfare safety net and SSP, providing a further incentive to self-isolate.

It will be available to people currently receiving at least one of the following benefits: Universal Credit, Working Tax Credits, income-related Employment and Support Allowance, income-based Jobseeker’s Allowance, Income Support, Pension Credit, or Housing Benefit.

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