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We need a Back to Work Budget for Erith and Thamesmead

It is clear the Government was too slow to recognise the scale of the health crisis from coronavirus and we are already paying the economic price.

I am increasingly worried that the slow and muddled health response is now being followed by a slow and muddled response to saving jobs. The window is closing to protect existing jobs and encourage firms to invest in creating new ones.

There were 2,780 people in Erith and Thamesmead claiming for Universal Credit and other benefits last month, a rise of 132% since the outbreak of coronavirus. Although this is an imperfect measure of unemployment, it hints at the scale of the looming jobs crisis in our community.

Reports the government has pushed back its next full budget to the Autumn worry me, as we’re already behind other countries like Germany, which announced a full economic package weeks ago.

We need an urgent package of economic measures with a clear focus: Jobs, Jobs, Jobs.

Supporting this, we need a strategic withdrawal of support schemes tailored to the needs of specific sectors and areas.

Nearly 1 in 4 people of working age in Erith and Thamesmead are relying on the Job Retention Scheme (16.7%) or the Self-Employment Income Support Scheme (7.22%).

Labour called for and welcomed these schemes, but we are concerned about their abrupt withdrawal which risks pushing millions of people into unemployment. The Chancellor plans to withdraw support for all sectors and areas of the economy at once and has not linked his plan to other public health measures, such as easing social distancing guidelines where it is safe to do so.

This one-size-fits all approach won’t work for sectors like hospitality. Pubs, restaurants and cafes will be operating well below capacity when they eventually reopen, and their fortunes are closely linked to the decisions that are taken on social distancing. It makes no sense to withdraw support for the 2,315 hospitality workers in Erith and Thamesmead at the same time as sectors that are operating as normal and will need less support.

Similarly, firms relying on tourism face losing the majority of trade from the summer high season. Snatching away all support in October, just as the high season ends, could be ruinous for the tourism sector and the roughly 1,640 jobs it creates in Erith and Thamesmead.

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Erith and Thamesmead see unprecedented 2% unemployment rise

Unemployment has risen to unprecedented levels across the UK with Erith and Thamesmead seeing a rise in unemployment to 5.6% of the adult workforce, just above the average figure for the whole of London and the wider UK.

Centre for Cities, an independent research organisation, has been recording the rise in unemployment rates across the UK between March and April. Data recording the number of people applying for Universal Credit and Job Seekers Allowance shows and increase in unemployment of 850,000, taking the UK wide total to 2.1 million.

Between March and April 2020, an increase of 1,605 people applied for Universal Credit or Job Seekers Allowance in Erith and Thamesmead, a rise of 2%. The Royal London Borough of Greenwich has been affected slightly more than the London Borough of Bexley with a 0.2% higher uptake in this time period.

It is expected that the unemployment rates are likely to have risen between April and May but this data is not yet known. There are also disparities in the unemployment increases in different areas of the UK. London has an average unemployment rate of 4.9% compared with 5.6% in Erith and Thamesmead and 8.9% in Blackpool.

The reasons for differing increases in unemployment are not yet known but it is suspected that places that rely heavily on the most impacted industries such as hospitality, and where people are unable to work from home, have seen a greater impact.

In a letter to the Secretary of State for Work and Pensions to raise concerns about the rise in unemployment locally, I said:

“I am concerned that residents in Erith and Thamesmead will face increased difficulties compared to the wider region of London post-Covid-19 due to decreased local job opportunities and restricted travel routes around London. It is already evident that my constituents have felt more severe impacts compared with the rest of London, as unemployment has risen 0.7% higher than the London average.

Many local businesses have contacted me throughout this crisis detailing their financial hardship and inability to access the SEISS or Job Retention Scheme. As more businesses fall into financial hardship residents in Erith and Thamesmead will be faced with more job losses.

If the working age population in Erith and Thamesmead is going to recover from this crisis there will need to be a specific focus on boosting the local economy, improving transport links and supporting industries that have been hit particularly hard.”

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The Government must protect jobs in the aviation sector – starting with British Airways

British Airways announced they plan to cut up to 12,000 jobs as part of their response to economic losses due to COVID-19. I have joined London MPs in calling on the Director of IAG, Willie Walsh, to reconsider these plans and work with trade unions to develop a long-term strategy.

I’ve been contacted by several employees of BA, resident in Erith and Thamesmead, who are concerned about their future. It is irresponsible of BA to make these announcements at a time of financial hardship for many, without first consulting with staff, unions and local stakeholders. I have personally written to the Secretary of State for Business, Energy and Industrial Strategy, Alok Sharma MP, to ask that his department to make representations about these concerns to IAG.

Moving forward from the COVID-19 crisis we must look to protect as many jobs as possible and create a plan to help people re-skill and find new employment. The aviation sector has faced huge losses during COVID-19 as almost all flights have been completely grounded over the past two months.

I am pleased that MPs from across the political spectrum have been working hard on this issue and trying to engage the relevant bodies. However, the Prime Minister and Chancellor, Rishi Sunak MP, who is at the forefront of protecting jobs and businesses, do not appear to be as enraged as MPs representing constituents who will suffer if this goes ahead.

Huw Merriman MP secured an urgent question on June 3rd 2020, “to ask the Chancellor of the Exchequer if he will make a statement on covid-19 and the economic impact on aviation”. Unfortunately, the Chancellor did not attend this debate to listen to concerns.

Wes Streeting MP, Shadow Exchequer Secretary to the Treasury, raised concerns that more job losses were to come if we did not act, he said:

“This is a sector that contributes £22 billion a year to our economy, with 230,000 jobs across the industry and the manufacturing supply chain dependent on it. It needs to change to meet the challenge of climate change. So why did one industry leader tell the Transport Committee just a fortnight ago that the Government were ‘asleep at the wheel’?”

I will be continuing to make representations on behalf of my constituents and attempt to engage IAG and the Chancellor in this issue. In the meantime, if you have been personally affected by job losses in the aviation industry, please do get in touch at abena.oppongasare.mp@parliament.uk

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Know your rights at work during Covid-19

On Monday 11th May, Prime Minister Boris Johnson, announced that lockdown measures would be eased. Since then I have been receiving emails from constituents asking for clarification on the updated rules and with concerns regarding returning to work.

It was irresponsible for Boris Johnson to suggest that lockdown measures had been eased without offering specific details about how we should regard public safety. I share constituent concerns that the Government has put the economy before human life and many will be asked to return to work without sufficient safety precautions being taken into account.

For those concerned about their safety, UK employment law offers some protections for employees that are important to note during this crisis. Section 44 of the Employment Rights Act 1996 provides employees with the right to withdraw from, and refuse to return to, a workplace that is unsafe.

This law relies on ‘the opinion’ of the employee and therefore can be used to justify refusing to enter a workplace based on the different scenarios and circumstances facing people throughout the pandemic.

It is important to note that those who can work from home should still do so and those on the shielding list should refrain from going into work. The Prime Minister aimed his easing of lockdown restrictions at those who are unable to work from home, such as construction workers.

Many constituents across Erith and Thamesmead have raised the issue that it is particularly difficult to socially distance on a construction site. Similar issues are now facing employees in schools and retail workers who had previously been furloughed.

Section 44. provides employees with the means to contest the suitability of safety arrangements without fear of recriminations. This means that an employee can refuse to enter an unsafe working environment without fear of being fired or suffering loss of wages.

Whilst I am pleased these employment laws exist to protect people, there will inevitably be some employers who expect employees back at work without conducting the appropriate risk assessments. I would encourage everyone to join a union who will be able to represent for your rights in the workplace.

Should your employment or safety become compromised during this crisis please do not hesitate to contact me for assistance and guidance at abena.oppongasare.mp@parliament.uk.

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Parliamentary business continues despite crisis

I hope you are staying home and keeping safe at this very challenging time. I’m working from home where my job as your MP continues. My team and I continue to support local people with a range of casework, from helping people to access financial support as a result of Covid-19 to assisting those stranded overseas. I’m also still holding the Government to account and demanding answers where their strategy is failing.

Parliament will be meeting virtually for the duration of the lockdown and business will continue as much as it possibly can. I’m taking the concerns you’ve raised with me directly to Ministers. 

This week and next at Parliamentary question time I’ll be asking the Culture Secretary about the support available for self-employed people working in the digital, culture, media and sport industries affected by Covid-19. I’ll also be asking the Justice Secretary about the very serious challenges facing our prisons at this time and what action is being taken.

Next week, my Housing, Communities and Local Government select committee will be questioning Secretary of State Robert Jenrick. I’ll be asking him how he is ensuring local authorities like Greenwich and Bexley get the financial support they need at this time of crisis. Councils have faced massive cuts and the Government must step up to ensure they meet all of the costs associated with delivering social care and other vital local services.

My committee, with my support, will also be launching an inquiry into the impact of Covid-19 on homelessness and the private rented sector. I and many of my colleagues have serious concerns about the short and long-term impact on homelessness and those in insecure housing and we want to hear from those affected and organisations supporting them in order to make recommendations to Government. You can submit your views to hclgcom@parliament.uk.

If you have an issue you need my help with or if you have any questions or concerns to put to me, please don’t hesitate to get in touch and my team and I will get back to you as soon as we can.

Abena Oppong-Asare

MP for Erith & Thamesmead

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Covid policy response for self-employed in creative industries

The measures required to contain the spread of COVID-19 (coronavirus) are unprecedented and demand a national effort. But more support needs to be offered for those who are in the creative industries and therefore self-employed.

The Government announced a set of emergency measures outlining financial support during the coronavirus outbreak. Since I wrote to the Chancellor, Rishi Sunak MP, calling on the government to introduce further emergency financial measures the Government has announced the self-employment support scheme.

However, this does not go far enough to guarantee the income of workers who are self-employed in the creative industries and do not qualify for this scheme.

Our creative industries are worth a total of £117bn to the economy, much of this is due to the talent in its workforce. The creative industries have vanished overnight due to the coronavirus pandemic and so this workforce should be treated with the same support as those in secure jobs.

The latest Government response to those who do not qualify for the self-employed support scheme due to working within creative industries is: “We recognise that there are challenges for the creative industries in accessing government support. The Fed team is in ongoing conversation with the government to ensure that this support better fits the needs of the creative industries.”

In the meantime, I am doing all I can to make sure those in the creative industries get the support they need from the Government. This issue has been highlighted to the Government and is one myself and my colleagues are working on ways to pressure the Government into acting on urgently.

My colleague has contacted the Chancellor, Rishi Sunak MP, to raise these concerns which you can read here: https://bit.ly/3azWSnK.

Things are changing fast and so I would ask that you keep an eye on the Governments official website for updates on any changes to the financial offer for those in the creative industries. You can find that here: https://www.gov.uk/coronavirus

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Covid-19 emergency legislation response

In March 2020 the Government introduced emergency Covid-19 legislation in response to the ongoing public health crisis.

I hold major concerns regarding the sweeping powers that this bill introduced. However, in line with guidance and following discussion with colleagues, I and other colleagues in the opposition did not attend the debate. It is important to point out that we did have many meetings and discussions relating to this bill and our concerns were relayed to our front bench MPs and shadow ministers. We agreed that this was the safest and most organised way to scrutinise this legislation.

Therefore, the Labour Party including myself put across many issues and concerns in relation to this legislation. To summarise for you, we made the following points with regards to this legislation:

  • The legislation should be reviewed after six months, with a fresh vote in parliament after this six-month period. The restrictions should be temporary and should not represent a long-term restriction of our civil liberties. This has been passed into law, meaning that the legislation will now be reviewed on this basis.
  • Jobs and incomes must be protected. This should include a European-level sick pay for all workers and an end to the five-week waiting period for Universal Credit. I also wrote to the Secretary of State regarding issues that relate to the self-employed, as they did not currently have the same level of protection as employed workers.
  • I would like to see more support for private renters, including potential rent suspension and a ban on evictions for six months rather than three months. Again, I wrote to the Secretary of State on the issue of private renters.
  • I have real concerns regarding the mental health elements of this bill and the impact that this bill has on the pre-existing Care Act. Naturally, these concerns were raised with the Labour front bench and brought forward for debate in the House of Commons.
  • We have recommended that changes to care of the disabled and elderly should undergo a review by the Equalities and Human Rights Commission and undergo a review.

Despite very real concerns I do understand the need for urgent government intervention to arrest the spread of this virus, whilst also mitigating the impact on our economy. I would echo the words of Labour’s Shadow Health Secretary, Johnathan Ashworth, when he said it was with a ‘heavy heart’ that we would support this legislation overall, although with the caveats mentioned above.

I will continue to scrutinise this legislation in the future alongside my Labour colleagues to ensure the issues I have raised can be addressed.