By Damon Mitchell • 24 September 2020 • 14:15
CHANCELLOR of the Exchequer Rishi Sunak has today, September 24, announced the follow-up to the furlough scheme as he looks to avoid a winter employment crisis after the new Covid restrictions have come into effect.
Subsidising wages will play a big part in a new plan for the economy facing the newest phase of the health crisis. Focussing on a subsidy on the pay of workers who have been reduced to a third of their normal working hours, in “viable” employment.
Sunak stated that the Job Support Scheme would make up “two-thirds of the pay they have lost” leaving the employer to pay for physical hours worked.
The Chancellor’s main points covered:
The Job Support Scheme to start in November, lasting six months
The income support scheme for the self-employed to be extended
Businesses will now have 10 years to repay Bounce Back Loan under a “pay as you grow” extension
Also, the hospitality and tourism sector will have the VAT cut of 5 per cent extended until March.
The Chancellor made these announcements after warnings that new restrictions on businesses, that are said to continue for at least six months, could lead to unemployment as the Job Retention Scheme comes to an end.
Sunak stated, “The government will directly support the wages of people in work, giving businesses who face depressed demand the option of keeping employees in a job on shorter hours rather than making them redundant.”
He also pointed out that the Job Support Scheme would be available to all businesses though large companies would have to show a large drop in takings.
Companies that are currently employing furloughed staff on contracts with fewer hours would be entitled to the Jobs Support Scheme and the jobs retention bonus, which is a £1,000 paid to businesses for each employee on furlough who goes back to work.
We hope you enjoyed this article “Chancellor announces Job Support Scheme to avoid employment crisis”.
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