Source · Select Committees · Public Accounts Committee
Recommendation 4
4
The Departments did not evaluate the schemes or identify which the groups they support before...
Conclusion
The Departments did not evaluate the schemes or identify which the groups they support before extending them. Both the schemes have been extended due to the prolonged impact of the pandemic, but the Departments have not yet produced evaluations of the initial CJRS and SEISS schemes. HMRC provides monthly updates on the cost of the schemes and the take-up by demographics such as age and gender. It does not, however, have data analysing take-up by protected characteristics such as race and disability. It does have some preliminary analysis that suggests 90% of furloughed workers return to their employer after furlough, but more needs to be done to track the medium- and long-term effects after furlough ends. Recent data shows the unemployment rate has now risen from 4.0% at the start of the pandemic to 4.8%, and the Office for Budget Responsibility (OBR) is projecting unemployment will rise to 7.6% in 2021. Recommendation: HMRC should, as soon as possible, develop and report monthly performance information on the schemes, such as take-up by protected groups and employment outcomes.
Government Response
Not Addressed
HM Government
Not Addressed
4. 1 The government agrees with the Committee’s recommendation. Recommendation implemented 4.2 Both departments are already monitoring the use of CJRS and SEISS, and HMRC is regularly publishing Official Statistics on the schemes including analysis of take up by area, age and gender. The CJRS statistics include analysis of the use of flexible furlough. 4.3 In October 2020, HMRC published secondary analysis of ended furloughs, which found that 90% of employees who left the CJRS between April and July 2020 were still on their original payroll in August 2020, suggesting they remained working for their original employer. HMRC also published qualitative and quantitative research, on awareness, understanding and customer experience of the CJRS2. 4.4 HMRC is collecting new primary research to examine jobs outcomes, working closely with HM Treasury to respond to emerging plans and priorities as the pandemic evolves. As announced on gov.uk, the departments will evaluate the CJRS and SEISS schemes and have published a detailed evaluation plan for CJRS. The CJRS evaluation aims to include the impact on employment. The evaluation will capture the extension and we will publish in line with relevant guidance. Some of the longer-term outcomes will be measured and reported in our routine publications.