Commons Sense

House of Commons · Ministers' Questions

Coronavirus Job Support Schemes

Tuesday 15 September 2020 · 9 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 7 Not answered 0

Key points

  • Tracy Brabin questioned the financial impact of the COVID-19 outbreak on individuals ineligible for the job retention or self-employment income support schemes.
  • Helen Hayes inquired why the Chancellor persisted with a "cliff-edge" approach to the furlough scheme instead of adopting a flexible method.
  • Peter Gibson asked about the steps the Treasury is taking to help businesses obtain bounce back loans from new start-ups and challenger banks.

Topics (select to filter)

Questions & Answers

Q1 Tracy Brabin Lab
Economy Benefits & Welfare
Context

The MP is concerned about the financial effects of the coronavirus outbreak on people who are not eligible for either the Job Retention Scheme or the Self-Employment Income Support Scheme.

Question

What assessment has been made of the financial effect of the covid-19 outbreak on individuals not eligible for the job retention scheme or self-employment income support scheme? The MP asks if a statement will be made regarding this issue.

Answer from Rishi Sunak

The Government have put in place policies to support businesses and individuals through the crisis, with the job retention scheme supporting over 9 million jobs and the self-employment income support scheme assisting more than 2.7 million people. As the economy reopens, adjustments will be made to ensure continued support for livelihoods.

Partly answered

Not addressed: Financial assessment of ineligible individuals was not provided.

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q2 Helen Hayes Lab Dulwich and West Norwood
Economy Employment
Context

The Institute for Employment Studies forecasts that more than double the number of redundancies seen in the 2008-09 recession could occur by the end of the year, affecting many people in creative industries and hospitality.

Question

Why is the Chancellor persisting with a cliff-edge approach to furlough instead of taking a flexible approach? The MP asks why this will inflict hardship on so many people when a more flexible approach could save good jobs for the long term.

Answer from Rishi Sunak

The Chancellor states that the current furlough scheme is adaptable, allowing businesses to reintegrate their workforce as they reopen. He claims this flexibility meets business needs and is being utilized effectively.

Partly answered

Not addressed: Explanation for continuing a 'cliff-edge' approach was not provided.

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q3 Alun Cairns Con
Economy Business & Trade
Context

The MP commends the introduction of the SEISS and notes it cannot continue indefinitely. He highlights that the self-employed are crucial to economic innovation.

Question

Does the Chancellor recognise that the SEISS cannot continue forever? The MP asks for support to be released to kick-start the economy post-pandemic.

Answer from Rishi Sunak

The Chancellor agrees that the level of intervention cannot continue indefinitely. He supports entrepreneurial self-employed individuals, stating they will receive continued support as economic recovery progresses.

Answered
Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q4 Gerald Jones Lab Merthyr Tydfil and Aberdare
Employment Benefits & Welfare
Context

The MP expresses concern about hundreds of thousands across the country who have not received support through existing schemes. The Government has had six months to address this.

Question

What barriers exist now that prevent people from accessing government support if they are not covered by either the coronavirus job retention scheme or the self-employment income support scheme? The MP asks for a statement on these obstacles.

Answer from Rishi Sunak

While not all have received direct help, significant increases in universal credit and local housing allowance provide crucial support. Measures such as mortgage holidays have also been implemented widely to aid those affected by the pandemic.

Partly answered

Not addressed: Specific barriers for ineligible individuals were not outlined.

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q5 Peter Gibson
Economy Business & Trade
Context

Darlington businesses have received over £33 million in bounce back loans, but those banking with start-up or challenger banks face difficulties accessing these loans.

Question

What steps is the Treasury taking to assist businesses banked with new start-ups and challengers in obtaining bounce back loans? The MP seeks specifics on this issue.

Answer from Rishi Sunak

The Chancellor acknowledges the importance of alternative lenders in providing finance and states that 28 lenders have been accredited, offering loans to over a million businesses. He urges those seeking support to contact one of these lenders.

Partly answered

Not addressed: Specific steps taken by Treasury were not detailed.

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q6 Chi Onwurah Lab Newcastle upon Tyne Central and West
Benefits & Welfare
Context

The MP highlights the sense of unfairness among those ineligible for support, such as new entrepreneurs or event business owners, due to missed tax return deadlines or lack of events.

Question

How can the Chancellor expect national unity in fighting the virus when so many are completely excluded from all forms of support? The MP asks how this situation will be addressed.

Answer from Rishi Sunak

Most people recognize that unprecedented support has been provided through various channels, including welfare systems and local authorities. The Chancellor emphasizes availability across multiple avenues for those affected.

Partly answered

Not addressed: Specific measures to address exclusion were not detailed.

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q7 Tracy Brabin Lab
Economy Employment Benefits & Welfare
Context

3 million self-employed people have been excluded from coronavirus support schemes, leading to an unprecedented need for emergency food parcels. Nearly half of the new users are first-time recipients.

Question

It is now six months since 3 million self-employed people have been excluded and locked out of the coronavirus support schemes. This week, the Trussell Trust announced an unprecedented need for support with six emergency food parcels being delivered every minute as we get to winter. I implore the Chancellor to tell hon. Members what he will do to support those who are excluded so that this disaster does not turn into a catastrophe.

Answer from Rishi Sunak

The hon. Lady is slightly confused. Those who were not eligible for the self-employment scheme earned more than £50,000 and were in the top 5% of all earners with an average median salary of £200,000.

Not addressed: The question about supporting excluded self-employed individuals was not addressed. The Chancellor instead questioned the accuracy of the figures provided by the questioner.

How: Questioning The Accuracy Of The Figures

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q8 Pat McFadden Lab Wolverhampton South East
Employment
Context

Infection rates are growing, leading to more common local restrictions. The latest figures show a two-year high in unemployment, particularly among the young.

Question

When circumstances change, policies should adapt. Infection rates are growing, local restrictions are becoming more common, and this morning's figures show levels of unemployment at a two-year high, rising particularly among the young. France and Germany have extended their employment support for a further year. Is it time to reconsider the jobs cliff edge that is approaching at the end of next month, and at least to extend employment support to those sectors that cannot yet go back to work, and areas hit by local lockdowns?

Answer from Rishi Sunak

The right hon. Gentleman is right to highlight the increase in cases, which is why the Government have taken steps to ensure we remain in control of suppressing the virus. He mentioned other countries like Germany with a long-standing scheme. We have announced extra business rates support for businesses in local lockdown areas with a payment of up to £1,500 per three weeks.

Partly answered

Not addressed: The specific ask about reconsidering the jobs cliff edge was not directly addressed.

How: Focusing On Measures Taken For Businesses In Local Lockdowns

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q9 Meg Hillier Labour (Co-op) Hackney South and Shoreditch
Economy Taxation Employment
Context

The Public Accounts Committee is already beginning to assess the costs from people who were self-employed or on short-term contracts without support, which ultimately leads to state costs.

Question

As you might expect, Mr Speaker, the Public Accounts Committee is already beginning the reckoning of costs. There are costs to the Exchequer from all those who were self-employed or employed on short-term contracts and received no support. The state still has to support these people with no tax coming in from them. Will the Chancellor go back to the drawing board and consider the long-term issue of the cost to our country of not supporting people?

Answer from Rishi Sunak

I hear what the hon. Lady says and will certainly reflect on it. I refer her to my response about a digital taxation system, which is part of our 10-year tax administration strategy for real-time information collection.

Partly answered

Not addressed: The specific ask was not directly addressed; instead, the Chancellor referred to the importance of a digital taxation system and a ten-year tax strategy.

How: Redirecting Towards Future Plans For Better Data Collection

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)