100,000 workers fall through rescue net

AS many as 100,000 workers may have slipped through the Government’s safety net during the coronavirus crisis, a study has found.

A loophole in the Government’s furlough scheme means employees who left their previous job in March but started their new role after the lockdown began are not eligible for financial support.

Analysis by the Institute for Employment Studies (IES) found that typically around 500,000 workers move jobs each month and three-quarters of those are paid monthly.

Its report estimated that around 100,000 workers who have moved jobs will be ineligible for the scheme, in which the Government provides funding for 80 per cent of employees’ wages up to £2,500 a month.

These workers – who do not qualify to be furloughed by their new firm – may instead have to rely on Universal Credit benefits, which are far lower.

Tony Wilson, director of the IES, urged the Treasury to extend the date to the end of March so that job movers could be included in the job retention scheme.

He said: ‘These people can of course claim Universal Credit, but it’s becoming clearer by the day this isn’t proving adequate, even with the welcome increases announced last month.’

By Thursday, HMRC had received 3.8 million furlough claims within four days of the application process opening.

The job retention scheme is estimated to have already cost taxpayers £4.5billion. This figure is expected to rise as firms furlough more staff, or extend the period for those already on the scheme.