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Temporary Employment Subsidy

Volume 958: debated on Tuesday 14 November 1978

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asked the Secretary of State for Employment if he will give an assurance that no firms at present in receipt of the temporary employment subsidy are engaged in price-cutting activities made possible by the subsidy, in such a way as to affect the competitiveness of more efficient and unsubsidised firms competing in the same market.

There is no condition in the scheme relating to prices, and therefore no such assurance can be given. TES is seen as a contribution of £20 per week to the wage costs incurred by the employer in maintaining a job which would otherwise lapse through redundancy and we satisfy ourselves as far as possible that the subsidy is paid only as long as jobs continue to be genuinely at risk.

asked the Secretary of State for Employment whether he will make a statement about the continuance of the temporary employment subsidy programme after the end of the present phase.

The present temporary employment subsidy scheme is due to close for applications on 31st March 1979. The future of the scheme and other special employment measures is now under review and the Government will decide, after the usual consultations, what changes will be necessary from 1st April 1979. At this stage I am not able to make a statement.