Posted on by Rhoda Grant
Rhoda Grant is asking the Chancellor to rewrite the rules of the scheme which has left tens of thousands of people through no fault of their own without a source of income.

Highlands & Islands MSP Rhoda Grant is calling on the Chancellor of the Exchequer Rishi Sunak to put an end to his punishment of new start employees.

Rhoda Grant, who is Scottish Labour’s shadow finance minster, is asking for changes to be made to the guidelines of the HM Treasury’s Job Retention Scheme which was unveiled by the Chancellor to help business deal with Coronavirus.

It was designed to cover the cost of paying for millions of people who were suddenly left without work when businesses shut down in an attempt to slow the spread of the pandemic.

Companies can use the scheme to pay their staff 80% of their wages – up to £2,500 a month. But the Treasury says qualifying employees must be registered on the company’s PAYE system by 28 February to limit the possibility of fraud. This means those who were switching jobs at this time have fallen through the cracks, potentially facing months without a salary because their new employer cannot apply for the wages grants.

Employees who were on payroll on 28 February but have since left that job for whatever reason (i.e. not just redundancy) can be re-employed by their old employer and placed on furlough, similar to gardening leave, and be paid 80% of their wages – up to £2,500.

However, previous employers are under no obligation to do this.

Rhoda Grant said: “I have written to the chancellor calling on him to put an end to his unfair punishment of workers whose only wrongdoing was to chose to change jobs and move forward in their careers before the economic consequences of the Coronavirus pandemic was known.

The chancellor must amend these rules to ensure that no one is left behind.  As the scheme stands it discriminates against those who changed their job and leaves them dependant on a previous employer for their income. The campaign against the Treasury on this issue is colossal. It cannot be ignored.”

Ends

Editor’s note:

April 7: Scottish Labour Party Press Office news

NEWS FROM SCOTTISH LABOUR

IMMEDIATE

CHANCELLOR MUST STOP FAILING NEW START EMPLOYEES – LEONARD

This morning Scottish Labour Leader Richard Leonard has written to the Chancellor of the Exchequer, Rishi Sunak, to demand action over new start employees being failed by the Coronavirus Job Retention Scheme implemented by the Chancellor.

Funding should be available to support those who began new jobs after the 28th of February.

Scottish Labour leader Richard Leonard writes: “I have been contacted by a number of constituents who, through simple circumstance, will be ineligible because their start date in their current job falls after 28th February.”

He continues: “Whilst I understand and appreciate the need to put in place rules that minimise the opportunity for the scheme to be abused by unscrupulous employers, and I recognise the speed with which it was created, I believe there are other checking mechanisms that can be deployed that would ensure that those who began new jobs after the cut-off point could be included in the scheme.”

Highlighting the unfairness of this situation, Mr Leonard states: “The Treasury will have records of tax and NI paid prior to the 28th February by these individuals and their previous employers and will enable them to identify those that have moved employment at the critical period … in my view, leaving workers who changed jobs out of this scheme through no fault of their own is simply not acceptable.”

Concluding, Mr Leonard says: “I hope you will be able to give this your urgent consideration and bring forward changes to provide support to a small but important number of working people.”

ENDS

 NOTES TO EDITORS

The full text of the letter from Richard Leonard to Rishi Sunak can be seen below

Dear Chancellor of the Exchequer

Re:  Job Retention Scheme – COVID -19

I am writing in relation to the Coronavirus Job Retention Scheme and the impact being felt by employees who began new jobs after 28th February who are ineligible under the current rules.  I have been contacted by a number of constituents who, through simple circumstance, will be ineligible because their start date in their current job falls after 28th February.

Whilst I understand and appreciate the need to put in place rules that minimise the opportunity for the scheme to be

abused by unscrupulous employers, and I recognise the speed with which it was created, I believe there are other checking mechanisms that can be deployed that would ensure that those who began new jobs after the cut-off point could be included in the scheme.

The Treasury will have records of tax and NI paid prior to the 28th February by these individuals and their previous employers and will enable them to identify those that have moved employment at the critical period.  I recognise this will increase the burden of work on the Treasury and the DWP but, in my view, leaving workers who changed jobs out of this scheme through no fault of their own is simply not acceptable.

I am sure officials in the Treasury will be able to consider this and identify other mechanisms that would enable this group of workers to qualify for the scheme alongside their colleagues.

I hope you will be able to give this your urgent consideration and bring forward changes to provide support to a small but important number of working people.

Yours sincerely

Richard Leonard MSP

Leader – Scottish Labour Party

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