Furlough scheme still 'shamefully' leaving new starters without support, says MP

The Sr Helens North MP has asked Chancellor Rishi Sunak to provide urgent support to workers who find themselves exempt from the scheme, due to delays in getting them on company payrolls.

The government introduced the Coronavirus Jobs Retention Scheme in order to help employers whose operations had been severely affected by COVID-19, allowing businesses to furlough employees and claim 80 per cent of their monthly wages.

READ > St Helens Council leaders warn of 'unprecedented cuts' without more government support

Following the initial announcement, Mr McGinn wrote to the Chancellor to raise “serious concerns” after it was identified that thousands of workers who recently changed jobs would be ineligible for the scheme’s support.

In response, Mr Sunak amended the initial cut-off date of the scheme from February 28 to March 19.

However, workers are still required to have been on their employer’s PAYE payroll by the deadline date, a loophole that renders new employees ineligible for support.

Mr McGinn, shadow minister for security, said: “Over recent weeks, many constituents from across St Helens borough have contacted me about the furlough scheme, and whilst I commend the government for offering a programme that inevitably will offer a lifeline for local businesses and employees, more must be done to address its serious faults.

“I know that locally many workers, who had recently changed jobs, are still not eligible for the scheme despite the alterations, and shamefully this has left far too many people with nothing despite having families to feed and bills to pay.”

Last week, Mr McGinn tabled a written question to the Treasury, asking what steps the government is taking to help this particular group of employees.

Hereford and South Herefordshire MP Jesse Norman, the Financial Secretary to the Treasury, sent a reply to Mr McGinn’s question on Wednesday.

Conor McGinn, Labour MP for St Helens North

He said: “The Coronavirus Job Retention Scheme is open to any individual who was on an employer’s PAYE payroll on or before 19 March 2020 and for whom HMRC received an RTI submission notifying payment in respect of that employee on or before the 19 March 2020.

“Those not eligible for the scheme may be eligible for other support government is providing, including a package of temporary welfare measures and up to three months’ mortgage payment holidays for those struggling with their mortgage payments.”

READ > Labour MP Marie Rimmer thanks government for 'saving' rugby league

Mr McGinn said the response was “lacklustre” and will fail to reassure those furloughed workers who are ineligible for the government’s furlough scheme.

The Labour MP said: “The Minister’s lacklustre response to my representations will do nothing to assure those, both in our community and across the country, who don’t make the threshold, and I will continue to make sure those individuals have an advocate in Parliament until the support they need and deserve is delivered.”