ALISTAIR Darling has praised the Burnaston Toyota plant but refused to commit to a European-style cash handout for workers who have had their hours cut.

Speaking to the Derby Telegraph yesterday, the Chancellor highlighted help the Government had already given to the car industry and argued that ministers had been supporting working families in other ways.

Mr Darling's comments came after Derby North MP Bob Laxton called for the Government to introduce a "short-term work subsidy" that could be paid to supplement employee's wages when hours were cut. Similar schemes have been introduced in France, Germany, Italy and Holland.

The Chancellor said: "I'm aware of the situation at Burnaston and I've visited the plant – it's been very successful in bringing new development into the country.

"The car scrappage scheme that we introduced has been very successful and we agreed that we would extend that. We do also support families through the tax credit system which, where a family's income drops, will provide more money for them."

Staff at the Toyota factory were put on a four-and-a-half day working week earlier in the year when the recession started to kick in.

But then the Government's car scrappage scheme – in which people are offered a £2,000 grant for trading in an old car for a newer model – shored up the UK's motor manufacturers.

It meant that in mid-August workers at Burnaston went back on to a full working week as output needed to be boosted.

However, at the start of October staff at the plant, which makes the Auris and Avensis models, returned to a shorter working week – a situation that will now remain until the end of March next year.