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Coronavirus Job Retention Scheme: Hospitality Industry

Treasury written question – answered on 18th May 2020.

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Photo of Fleur Anderson Fleur Anderson Labour, Putney

To ask the Chancellor of the Exchequer, whether he has plans to include (a) tips and (b) payments through a TRONC system in furlough calculations for the Coronavirus Job Retention Scheme in relation to hospitality industry staff.

Photo of Jesse Norman Jesse Norman The Financial Secretary to the Treasury

The objective of the CJRS is to enable employers to keep people in employment. To achieve this, the grants compensate employers for the payments that they are contractually obliged to make, in order to avoid the need for redundancies. Covering discretionary payments would go beyond the objectives of the scheme. The following guidance explains how to work out employees' wages for the purpose of claiming through the Coronavirus Job Retention Scheme: https://www.gov.uk/guidance/work-out-80-of-your-employees-wages-to-claim-through-the-coronavirus-job-retention-scheme

The Government recognises that for some employees, the pay in scope for this emergency grant package will be less than the overall sum they usually receive. The Government is supporting people on low incomes who need to rely on the welfare system through a significant package of temporary measures. This includes a £20 per week increase to the Universal Credit standard allowance and Working Tax Credit basic element, and a nearly £1bn increase in support for renters through increases to the Local Housing Allowance rates for Universal Credit and Housing Benefit claimants. These changes will benefit all new and existing claimants. Anyone can check their eligibility and apply for Universal Credit by visiting https://www.gov.uk/universal-credit.

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