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Poverty fears for millions of minimum wage workers in new lockdown

LOW-PAID workers are five times more likely to be furloughed on reduced pay during the second lockdown, new analysis shows.

Fears that minimum-wage earners will be plunged into poverty have arisen as England is put under the month-long lockdown due to start on Thursday.

The second national lockdown announced on Saturday, which will be voted on in the Commons tomorrow, also came with an 11th-hour  announcement that the furlough scheme will be extended — on the day it was due to end.

The Office for National Statistics published analysis today that revealed low-paid workers were five times more likely not to have their furlough pay of 80 per cent of wages topped up by bosses.

Two million workers are earning less than minimum wage of £8.72 an hour for those aged 25 and over, £8.20 for those aged 21 to 24, and £6.45 for those aged 18 to 20, the Annual Survey of Hours and Earnings also reveals.  

TUC general secretary Frances O’Grady said: “Low-paid and younger workers have been hit hardest during this pandemic. 

“Many on furlough have not had their incomes topped up by employers and have been forced to get by on less. That is not right. 

“No-one should be earning below the national minimum wage — especially in the middle of a crisis.”

Shadow chancellor Anneliese Dodds demanded that the government “get a grip” on the economic fall-out of the pandemic.

She also criticised ministers for having dragged their feet over implementing a second lockdown for more than a month despite  advice from scientists in September. 

Ms Dodds said: “Labour’s circuit-breaker [lockdown] would have been more effective and shorter, so less damaging to jobs and businesses, than the government’s last-minute but lengthy lockdown.

“The cost of Conservative delay will be counted in lives and livelihoods.”

It has been estimated that the delay in announcing an extension to the furlough scheme has already resulted in mass job losses.

Ms Dodds also pointed out that workers have been left in despair over their finances because of the government’s “panicked and last-minute” announcements.

She said on speaking to staff in a restaurant: “As rumours of a lockdown circulated, staff wiped away tears before putting on a brave face to customers. They did not know whether they would be working as normal the following week, face redundancy, be paid at 67 per cent or be paid at 73 per cent.”

She urged Chancellor Rishi Sunak to set out a six-month plan on how different scenarios will be dealt with in advance, to set out a support plan if the lockdown is extended or if parts of the country remain under restrictions after the national lockdown.

Labour has called on Mr Sunak to engage in cross-party talks for the six-month plan with trade unions and businesses to avoid more of the government’s “lack of any strategic planning.”

But shadow work and pensions secretary Jonathan Reynolds welcomed the government U-turn for the proposed cut in benefits for the self-employed.

Support for the self-employed will be doubled from 40 to 80 per cent of trading profits under the self-employed income support scheme, Mr Johnson announced over the weekend.

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