Harrogate and Knaresborough Liberal Democrats have accused local MP, Andrew Jones, of being “out of touch” on the government’s furlough scheme coming to an end.
It comes as the government is set to wind back the scheme and companies will have to contribute more to employees wages.
Mr Jones is reported to have said concerns over a surge in unemployment at the end of the scheme were “alarmist”.
Around 160,000 people have been on furlough in the Harrogate district and the scheme is set to finish at the end of October.
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But local Lib Dems said that the rolling back of the scheme will put a “greater burden” on local businesses and those who need to make ends meet.
Judith Rogerson, Lib Dem parliamentary spokesperson, said:
“Our hospitality and retail sectors are under enormous pressure locally; reducing the support given by the furlough scheme will only force businesses to meet yet another significant cost.
“The furlough scheme is the only thing keeping many families across Harrogate & Knaresborough afloat, so it is completely understandable that people are hugely concerned how they will make ends meet if the government brings this support to an end before the pandemic is over. It is simply out of touch for Andrew Jones to claim that this is ‘alarmist’.
“At this time of immense stress and disruption, people need as much certainty as they can get if they are to get back on their feet. We need our MP to recognise this and be doing all he can to get residents the support they need.”
Chancellor Rishi Sunak has previously said that the furlough scheme cannot “carry on indefinitely” and that it would be “wrong to keep people trapped” in a situation where there may be no job to go back to.
Previously, the government had been paying 80% of wages of those employees on the job retention scheme up to a maximum of £2,500 a month.
But, from today, the government will pay employee wages of 70% up to a cap of £2,187.50 a month and employers will pay 10%.
Next month, that will reduce to 60% up to a cap of £1,875 as companies contribute 20%.
Andrew Jones MP was approached for comment but did not respond at the time of publication.
