Ed Miliband advocates targeted extension of furlough

By Lisa Riley

Published: 05 June, 2020

Ed Miliband MP has shown his support for a targeted extension of the JRS in an interview this morning on BBC 4 Radio’s Today show.

Asked if he would put on a different timeframe for the furlough scheme, Labour’s shadow business secretary and former party leader said he thought that the “Chancellor’s mistake is to make it one size that fits all”.

“What has been good about what the government has done during this crisis, and I commend it for a lot of what it has done, is that the public health measures have been matched by the economic measures. Now if you take certain sectors like the hospitality, the arts and tourism, those sectors are going to take longer to recover and reopen.

“What the Chancellor has said in relation to the furlough, and again I welcome some of the extensions that's been put in place, is we’re just going to have one approach for the whole economy.

“Now whether it's through the furlough or through a different form of support - we reface an emergency in those sectors that I have talked about.”

Asked if he would keep the furlough scheme going beyond October and if so, for how long, he said: “The point is whether it’s through the furlough or through another form of support we have got to make sure that those businesses and those workers don’t go under.”

Miliband’s support of a targeted extension to the JRS follows Chancellor Rishi Sunak announcing the latest changes to the initiative last Friday, which includes workers being able to work part-time from the beginning of July, with their salaries being wholly paid by their employers.

From August, employers will have to begin paying National Insurance and pension contributions again, followed by 10% of employee’s pay from September, then 20% in October. The scheme will end on 31 October.

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