Furloughed workers to get 60% of their salary until September - Metro.co.uk

Rishi Sunak is expected to announce an extension to the Government’s furlough scheme (Picture: Reuters)

Chancellor Rishi Sunak is expected to announce an extension to the furlough scheme.

At least 6.3 million workers laid off by the coronavirus crisis are currently having up to 80% of their salaries paid by the taxpayer under the Government system. Mr Sunak has previously said he was preparing to ‘wean’ workers and businesses off the programme – which has cost some £8 billion – but calls have been made for it to be prolonged.

The programme is now expected to continue from June through to September, but payments will be cut to 60% of earnings. It is hoped that the move will avoid a cliff-edge cut-off and avert an estimated 1.2 million redundancies.

Prime Minister Boris Johnson hinted that the announcement would be made on Tuesday.

At least 6.3 million workers laid off by the coronavirus crisis are currently having up to 80% of their salaries paid by the taxpayer (Picture: Reuters)

Speaking on Monday he said: ‘I do think that the furloughing scheme has been one of the most remarkable features of the Government’s response and it is unlike anything seen internationally.

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‘Six-and-a-half million people currently are being supported. It is absolutely right that we should do it.’

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Health Secretary Matt Hancock was also asked about the continuation.

He told Sky News: ‘We have said that shouldn’t be a cliff-edge in the furlough scheme, but at the same time, we do need to try to get the economy back to something more like normal.’

The chancellor is expected to lower the £2,500 cap on monthly payments as well as cutting the wage subsidy, while self-employed workers with trading profits of more than £30,000 could be barred from claiming government grants – the present threshold is £50,000.

Torsten Bell, chief executive of the Resolution Foundation think tank and an early advocate of the scheme, said it should be phased out gradually.

He added: ‘Moving too quickly could spark a huge second surge in job losses at a time when unemployment already looks set to be at the highest level for a quarter of a century.

‘This policy has made a huge difference in this crisis. It now needs careful and gradual change to ensure the benefits it has provided are secured rather than squandered.’

Payments are expected to be cut from 80% of earnings to 60% (Picture: PA)

Mr Sunak will also reportedly lower the cap on monthly payments, while self-employed workers earning more than £30,000 could be barred from claiming grants (Picture: EPA)

Meanwhile, the managing director of leisure operator GLL Mark Sesnan has suggested any tapering should be looked at on a sector-by-sector basis.

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He said: ‘Industries such as leisure and hospitality (should be) protected. This is because, in order to adhere to social distancing guidelines, we will have to operate at a significantly reduced capacity.

‘In turn, this will have a major impact on the number of staff able to return to work fully.’

I do think that the furloughing scheme has been one of the most remarkable features of the Government’s response and it is unlike anything seen internationally.

The announcement is expected to be made at Tuesday’s Downing Street coronavirus press briefing (Picture: Reuters)

Meanwhile, ministers are to set out guidance on how people can travel safely on public transport as the coronavirus lockdown begins to ease.

The death toll from coronavirus in the UK stood at more than 32,000 as the PM said he wants those who cannot work from home to start returning to their workplaces from Wednesday.

Mr Johnson has said he does not expect a sudden ‘flood’ of people heading back to work following Monday’s publication of the Government’s ‘road map’ for lifting the restrictions.

But this prompted a barrage of questions as to how it could be achieved amid warnings the Government is watering down its clear ‘stay home’ message.

Ministers are to set out guidance on how people can travel safely on public transport as the coronavirus lockdown begins to ease (Picture: Alex Davidson/Getty Images)

Speaking at the daily No 10 press briefing on Monday, Mr Johnson said the measures – including allowing unlimited outdoor exercise – were mere ‘baby steps’.

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He warned the Government stood ready to reimpose controls if there was any sign of the transmission rate of the virus picking up again.

The TUC, meanwhile, has welcomed the publication of Government guidance on how workplaces can be made ‘Covid-secure’ as they re-open.

Employers – including factories and construction sites – will be required to carry out a risk assessment before they can resume.

This followed criticism by unions that Mr Johnson had issued his return-to-work call in his broadcast on Sunday without explaining how it could be safely achieved.

Get in touch with our news team by emailing us at webnews@metro.co.uk(opens in new tab).

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https://news.google.com/__i/rss/rd/articles/CBMiVWh0dHBzOi8vbWV0cm8uY28udWsvMjAyMC8wNS8xMi9mdXJsb3VnaGVkLXdvcmtlcnMtZ2V0LTYwLXNhbGFyaWVzLXNlcHRlbWJlci0xMjY4ODk2MC_SAVlodHRwczovL21ldHJvLmNvLnVrLzIwMjAvMDUvMTIvZnVybG91Z2hlZC13b3JrZXJzLWdldC02MC1zYWxhcmllcy1zZXB0ZW1iZXItMTI2ODg5NjAvYW1wLw?oc=5

2020-05-12 06:30:37Z
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