New furlough will leave low paid on benefits, says Labour MP

Furlough will be replaced by the Job Support Scheme on 1 November

Low paid workers will have to rely on Universal Credit under the UK government's replacement for furlough, a Labour MP has warned.

Jessica Morden said the new scheme, which will cover 67% of wages, "simply won't cut it" for workers.

Welsh MPs on Wednesday debated the impact of Covid on people and firms.

Conservative minister David TC Davies said the Welsh government had only been able to provide financial support in Wales because of UK government cash.

The debate, led by Iswlyn Labour MP Chris Evans, took place in Westminster Hall in Parliament.

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In November furlough will be replaced by the Job Support Scheme (JSS).

The UK government had been paying for 60% of wages, with employers covering 20% and workers receiving 80% of their pay, under the scheme that ends on 31 October.

Under JSS, workers at companies that have been forced to shut will get 67% of their wages paid for by the government.

Wales is to go into a short lockdown from Friday, with pubs, restaurants and non-essential shops forced to close until 9 November.

The Welsh Government, which announced its decision to lockdown on Monday, has asked for the JSS to be brought forward, or furlough restrictions eased, for the length of the lockdown, warning of redundancies because the JSS does not start until 1 November.

The Treasury has said the UK government had provided billions in support to Wales.

Newport East MP Jessica Morden raised concerns that the JSS would not be enough for the lowest paid workers.

She said: "There's this sense from Downing Street and from Westminster that people will make do. Well, they weren't coping before Covid."

"Given that two-thirds of the National Minimum Wage is around £800pm, there's also a strong likelihood that many of the lowest-paid workers in Wales - where the average wage is 15% lower than the UK average - will need to claim Universal Credit under the new Jobs Support Scheme."

Westminster Leader for Plaid Cymru, Liz Saville-Roberts, and the SNP have written to the Chancellor calling on the Treasury to bring forward the Job Support Scheme to coincide with the start of Wales's two-week firebreak.

They asked for the funding available to brought to the same level "granted on the Coronavirus Job Retention Scheme" - which was more generous before support was reduced as the year went on.

'We do not want to play politics'

Replying for the government, David TC Davies said the only reason the Welsh Government has been able to provide financial support to people affected by coronavirus pandemic is because of additional money by the UK Government.

The Welsh Government had promised extra support for businesses impacted by the firebreak.

Speaking at a Westminster Hall debate in Parliament, Mr Davies said the UK government has tried to avoid "politicking".

"For as long as this virus continues, the UK government will want to support all parts of the United Kingdom. And if other governments or other local authorities and other parts of the United Kingdom want to take credit for the enormous help that's been offered that that's absolutely fine by me.

"I can assure honourable ladies and gentlemen here that we do not want to play politics with this, we simply want to eradicate this virus, and then get back on with the job of rebuilding Britain".