Source · Select Committees · Business and Trade Committee
Recommendation 7
7
We appreciate that not every job can be saved as the Chancellor has set out,...
Conclusion
We appreciate that not every job can be saved as the Chancellor has set out, but are nonetheless concerned about rising unemployment, which is particularly affecting women, BAME workers and young people because they are more likely to be employed in insecure work. We are concerned that damage may be done to some sectors by the premature withdrawal of furlough and the Self-Employment Income Support Scheme, which would hamper the UK’s ability to recover quickly with a focus on good quality work. (Paragraph 30) 22 The impact of Coronavirus on businesses and workers: interim pre-Budget report
Government Response
Acknowledged
HM Government
Acknowledged
18. The Coronavirus Job Retention Scheme (CJRS) has already helped to pay the wages of people in 11.4 million jobs across the country, with more than £53 billion paid out in grants across the UK, protecting jobs that might otherwise have been lost. The Self- Employment Income Support Scheme (SEISS) has paid out almost £20 billion in grants to 2.7 million self-employed individuals whose businesses have been adversely affected by Covid-19. 19. To support businesses and employees through the next stage of the pandemic, the Chancellor of the Exchequer announced the extension of the CJRS and SEISS until September. As part of this announcement, the Government has extended the Real Time Information (RTI) cut-off date for the CJRS from 30 October 2020 to 2 March 2021, so that those employed on 2 March 2021 are eligible for claims starting on 1 May 2021. Based on early estimates, this means around 2.4 million more employees, are potentially eligible for CJRS. In addition, SEISS will continue until September with a fourth and fifth grant, and around 600,000 more self-employed individuals may be able to qualify for the new SEISS grants based on their 2019–20 tax returns. This includes many new to self-employment in 2019–20 and brings the total who are potentially eligible to 3.7 million. The fifth and final grant opens for claims in July and will include a turnover test, known as a Financial Impact Declaration (FID), to ensure that the most generous support is targeted at those who need it most.