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Motor Vehicles: Manufacturing Industries

Question for Department for Business, Energy and Industrial Strategy

UIN 99739, tabled on 6 October 2020

To ask the Secretary of State for Business, Energy and Industrial Strategy, what discussions he has had with Cabinet colleagues on the potential effect of the ending of the Coronavirus Job Retention Scheme on levels of job losses in the automotive industry.

Answered on

12 October 2020

The Coronavirus Job Retention Scheme was welcomed and widely utilised by the automotive sector. Surveys carried out by the industry body, the Society of Motor Manufacturers and Traders, showed that during the lockdown earlier this year, the Job Retention Scheme was accessed by 60.6% of the automotive manufacturing workforce in April and by 34.2% of the workforce in May.

In order to support the retention of jobs, my Rt. Hon. Friend Mr Chancellor of the Exchequer announced the Job Retention Bonus in June. This will see businesses receive a one-off payment of £1,000 for every previously furloughed employee if they are still employed at the end of January next year.

As part of his Winter Economy Plan, the Chancellor announced the Job Support Scheme, which is designed to protect jobs in businesses who are facing lower demand over the winter months due to Covid-19. The Government will pay a third of hours not worked up to a cap (£697.92 per month), with the employer also contributing a third.

In order to protect jobs and UK businesses, we are expanding the Job Support Scheme for businesses legally required to temporarily close their premises as a direct result of Coronavirus restrictions. The Government will provide employers with a grant for employees that have been instructed to cease work, covering two-thirds of their usual wages and subject up to a maximum of £2,100 a month.

Employers using the Job Support Scheme will also be able to claim the Job Retention Bonus if they meet the eligibility criteria.

Answered by

Department for Business, Energy and Industrial Strategy
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