To ask the Chancellor of the Exchequer, what assessment he has made of the financial effect on supply teachers who are employed by umbrella companies of receiving 80 per cent of the national minimum wage as a result of a standard clause in umbrella company contracts during the covid-18 outbreak.
21 May 2020
The National Minimum Wage (NMW) is calculated on the basis of hours worked, and furloughed workers will not be working any hours for their employer, although they will remain employed by them. Furloughed workers will be paid the lower of 80% of their salary or £2,500, even if, based on their usual working hours, this would be below the NMW. Employers can top up these payments voluntarily.
The Government is also supporting people on low incomes who need to rely on the welfare system through a significant package of temporary measures. These include 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 new and existing claimants. Anyone can check their eligibility and apply for Universal Credit by visiting https://www.gov.uk/universal-credit.