Labour is calling for a review of whether the chancellor’s job retention bonus scheme represents value for money for the taxpayer.
The scheme will pay firms £1,000 for each employee brought back to work from furlough and employed until January.
Labour’s call comes after the top official at HM Revenue and Customs (HMRC), Jim Harra, wrote to the chancellor about the plan’s efficacy.
Chancellor Rishi Sunak has defended the scheme.
The bonus scheme is intended to provide an incentive for companies to keep workers employed as the furlough scheme, which helped pay wages, is phased out over the autumn.
If every eligible worker is covered it will cost £7bn – making it a major plank of the Mr Sunak’s £30bn economic recovery plan.
Labour’s shadow chief secretary to the