The Chancellor, Rishi Sunak, in a statement to the Commons this afternoon, has confirmed that the Coronavirus Job Retention Scheme will be extended until at least October.
The scheme, which the Chancellor described as ‘a world leading economic intervention’ is supporting 7.5 million furloughed jobs in 1 million businesses.
Until July there will be no changes to the current scheme.
After that date the burden of paying salaries will be shared between the government and employers.
From August to October ‘greater flexibility’ will be introduced and employers currently using the scheme will be able to bring furloughed staff in for part time work.
Sunak added:
“Further detail will follow by the end of May but I want to assure people one thing won’t change: workers will, through the combined efforts of government and employers, continue to receive the same level of support as they do now, at 80% of their salary, up to £2,500.”
Comments (5)
I am not sure that this makes sense. Seems that a vast majority of people who could work won’t be encouraged to or will want to on 80%. I’d like to see a more targeted approach that encourages the under 50s back to work . It should be about risk management in my opinion taking into account the overall economic effects rather than a blanket 80% across all ages in all jobs.
The key words here are “After that date the burden of paying salaries will be SHARED between the government and employers” and “… through the COMBINED efforts of government and EMPLOYERS” .. What if the Government say their contribution is dropping to 20% and the employers are expected to cough up the remaining 60% just to get to the 80%?
That will help everyone to pay the portals for a while longer then…..
This flexibility should be brought in earlier. It will allow businesses to start the baby-steps to restarting and would take a massive burden off the government.
I would have staff in either a few hours each day or a day a week to help with admin and allocating/chasing rents etc
Great news!!