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Daily Record
Daily Record
Politics
Chris McCall

Furlough loophole leaves workers at risk of missing out on cash, says SNP MP

An SNP MP has called on the UK Government to do more to ensure that money paid out under its Job Retention Scheme reaches furloughed workers.

Kirsten Oswald wants all employees to be able to check what money was paid out to their employers by HMRC on their behalf.

Currently, HMRC’s Real Time Information system can only be accessed by the employer or an agent authorised by the employer.

Workers have no means of knowing if their National Insurance number is used to claim money – up to £2,500 a month – under the scheme.

The MP for East Renfrewshire, who previously worked at a senior level in Human Resources, said "transparency was the best way" to ensure that money paid out under the scheme reaches the furloughed workers.

Oswald MP said: “I welcome the steps taken by the UK government as a response to the economic impact of Coronavirus, including the roll-out of the Job Retention scheme – but action must be taken so these steps are not undermined.

“It is totally unacceptable that employees could have their National Insurance number used without their knowledge – and without them getting the cash.

“I am urging the Chancellor to ensure that all furloughed workers get the money that is claimed on their behalf and that they have the information they need to help them monitor this.

“This will prevent a situation whereby employers divert money meant for furloughed workers into meeting other business costs.”

HMRC guidance urges anyone who suspects their employer is committing Job Retention Scheme fraud to report what they know via an online portal.

A spokesman for HRMC said: "If an employee has a query about a Coronavirus Job Retention Scheme claim, they should speak to their employer.

“If you are concerned that your employer is abusing the scheme you should report them.

“This could include your employer claiming on your behalf and not paying you what you are entitled to, being asking to do work while on furlough, or making a backdated claim that includes times when you were working .”

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