British chancellor Rishi Sunak has said the government will cover a third of workers’ wages under a new coronavirus Job Support Scheme that will replace the furlough initiative. The furlough …
British chancellor Rishi Sunak has said the government will cover a third of workers’ wages under a newThe furlough scheme, which has been accessed by countless film and television companies in the UK, will be closed at the end of October and Sunak has come under pressure to set out fresh support for employees as a second wave of Covid-19 washes through the country.
Under the new six-month jobs scheme launching in November, the government will target support at employees who are working at least a third of their contracted hours. For the remaining hours not worked, the government and the employer will each pay a third of the member of staff’s salary.
The Treasury said someone who works 33% of their hours would get 77% of their wages, with the support capped at £697.92 a month. The scheme, which is similar to an initiative in Germany, was welcomed by employers, but it is a significant step down from the furlough scheme, under which the government covered 80% of wages.
From 1 November, for the next six months, the Job Support Scheme will protect viable jobs in businesses who are facing lower demand over the winter months due to Covid-19.
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