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NEW starters left out of the government’s coronavirus job-retention scheme feel they’ve been written off as “collateral damage,” campaigners said today.
Thousands of workers who started new jobs in February and April have fallen through the cracks of the scheme, which allows employers to claim a grant covering 80 per cent of the wages of a furloughed worker up to a maximum of £2,500 per month.
Initially, workers could only qualify for the scheme if they had been on the payroll since February 28. After a backlash, the Treasury extended the cut-off date to March 19.
But campaigners from the New Starters Justice group claim that they are still not eligible, as an addition to the Treasury’s guidance means that employees don’t qualify unless they were registered with HMRC before March 19.
Employers only submit real-time information to HMRC a few days before their payroll date, which tends to be at the end of the month, in which case this would not have happened before the 19th.
The Treasury says the rule is intended to prevent abuse of the scheme.
Speaking to BBC Breakfast today, campaigner Natalie Greenway said that being excluded from the scheme twice over felt like a “a kick in the teeth.”
She said: “When you read the small print, a lot of new starters like me still aren’t eligible for the scheme because of that submission stipulation.
“I have an offer letter, I have a signed contract, I have a March payslip and I even have a P60 with my new employer’s name on it.
“All the evidence is there for HMRC and the Treasury to look at to mitigate the fraud risk they keep talking about, but it just feels like they don’t want to see it — and they’ve just written all the new starters off as collateral damage.”
The Treasury insisted that 200,000 employees will benefit from the extended cut-off date.
“We’ve been flexible in our approach to ensure the scheme is as generous as possible whilst keeping the fraud risks under control,” a spokesperson said, adding that those who don’t qualify can access other support such as universal credit.
Seasonal workers at hostels and airports are also among the newly hired staff who fall through the gap.
