Liberal Democrats launch campaign to protect furloughed workers

The Liberal Democrats have launched a campaign to protect furloughed workers and their families with proposals to continue furlough payments when lockdown measures are eased, preventing redundancies.

Acting Leader of the Liberal Democrats Ed Davey, who is asking the public to join his campaign to protect furloughed workers, said his party’s plans would give people “that time and that confidence and help avoid further large-scale job losses.”

The call comes as a challenge to the Chancellor who has raised alarm when he said the level of expenditure on the Job Retention Scheme (JRS) was “not sustainable” and he wanted to “wind down” the scheme. The scheme is currently covering nearly a quarter of UK jobs, 23% of the employed workforce.

The Liberal Democrats have suggested the Treasury pays 50 per cent of employees’ salaries on the Job Retention Scheme in the first month after they have returned to work. By the third month back in work, the government would pay 30 per cent of their salaries, under the proposals.

Acting Leader of the Liberal Democrats Ed Davey said:

“The Government furlough scheme has done a good job at helping thousands of businesses through the lockdown, but the shadow of lockdown will be long, and the ‘new normal’ will be extremely challenging.

“Businesses and their staff need time to plan, and confidence the Government will be there, ready to support. Our proposal to protect furloughed workers would give people that time and that confidence and help to avoid further large-scale job losses.”

Alistair Cameron, Liberal Democrat National Assembly Candidate for Carmarthen West and South Pembrokeshire said added:

“The Coronavirus crisis has left countless families facing financial hardship, with unemployment rocketing up. Thankfully, the furlough scheme is protecting workers from redundancy. Everyone knows someone it’s helping.

“But this protection is under threat. The Chancellor said he wants to ‘wind down the scheme.’ This is wrong. This scheme is protecting families and our economy for the long term.

“That is why Liberal Democrats are calling on the Government to continue some furlough payments as lockdown is eased so we can help businesses to rebuild, stop job losses and stop unnecessary damage to our communities in Carmarthenshire and Pembrokeshire. There are many local small businesses in areas such as farming and tourism which rely on these payments.”

Juergen Maier, Chair of the Lib Dem Coronavirus Business Taskforce, added:

“The advisory group is concerned that once the furlough scheme comes to an end, many businesses, large and small, will simply not have the cash flow to re-employ staff, as it will take time for the economy to recover.

“If firms then were forced to make staff redundant, leading to another significant rise in unemployment, that could break the economy’s ability to recover, just as we were trying to exit lockdown.”

ENDS.

Notes to editors:

The Liberal Democrats are urging people to support the campaign here: https://www.libdems.org.uk/furlough

The Lib Dem jobs plan includes:

1. A “Safe to Return to Work Scheme”

• A new structured wage subsidy for all employees coming off furlough, with:
  • 50% of salary paid during the first month in work, after furlough
    40% of salary paid during the second month in work, after furlough
    30% of salary paid during the third month in work, after furlough
• The current £2,500 cap under the Job Retention Scheme would be reduced in line with these percentages. (First month: 50% of salary, up to £1,565 Second month: 40% of salary, up to £1,250, Third month: 30% of salary, up to £940).
• The scheme would begin from 1st July, or as soon as lockdown has been eased if later.
• If a company commits to employing the staff member for at least 6 months, this new 3 month wage subsidy could be paid upfront, to ease cashflow further

2.  New “Prepare to Return to Work” flexibility for part-time work in the Jobs Retention Scheme

• Building new extra flexibility into the existing Jobs Retention Scheme, to help businesses prepare for a return to work
• From 1st June, a furloughed employee would be allowed to work up to 50% of their time, whilst remaining on furlough, with the existing 80% wage subsidy
• This flexibility would end as soon as lockdown has been eased, and the “Safe to Return to Work Scheme” can be introduced

The Liberal Democrat Covid-19 Business Task Force:

The task force was set up by Ed Davey in late March to provide evidence-based advice to him and the party. It is advising on the business and economic implications of the Coronavirus epidemic and to recommend measures that will ensure the safest and fastest recovery of the economy. It will be focused on the recovery incentivising the building of a new economy that has a better overall societal purpose.