Rishi Sunak unveiled the emergency employment plan

Rishi Sunak unveiled the emergency employment plan

Media playback is not supported on your device

Media captionRishi Sunak: “We have to face the gifts of the corona virus”

The government and institutions will continue to pay the wages of workers who are unable to return to work full time due to the corona virus.

Under the Jobs Support Scheme, which replaces the Furloff Scheme, workers receive three-quarters of their normal salary for six months.

It aims to stave off mass labor cuts after the government took new steps to address the rising number of corona virus cases.

Chancellor Rishi Sunak said it was part of a broader winter economic plan.

According to official figures, about three million workers – or 12% of UK workers – are on partial or full-time leave. The current Farlog project expires on October 31.

Sunak said the new scheme “supports only practical jobs” as opposed to existing jobs only because wages continue to be subsidized by the government.

At a press conference, Sunak declined to comment on defining a job as “practical”.

“Sitting here and announcing every personal job is not for me,” he said. “All I can do is give them as much support as we can, given the limitations of what we do.

The government’s contribution to workers’ wages will fall sharply compared to the Farlog scheme. Under Farlog, 80% of the initial monthly salary was paid up to $ 2,500 – under the new plan it would be reduced to 22%.

“The primary goal of our economic policy remains unchanged – to support the work of the people – but we must develop the way we achieve it,” Sunak said.

READ  Hurricane Hanna threatens coronavirus-stricken South Texas with surge and winds

“I can’t protect every business, I can’t protect every job.”

The new project, which starts on November 1, will cost the government $ 300 million a month. Companies that use it can still claim a retention bonus, where the government pays at least ജോല 1,000 per employee who enters the job until the end of January.

Sunak said a similar scheme would be available for the self-employed.

How does the Employment Support Scheme work?

Image copyright
Getty Images

  • As the demand is low, the government will subsidize the salaries of employees who work less than normal hours
  • This applies to staff who can work at least a third of the normal time
  • Employers pay employees during working hours
  • During the hours when employees are unable to work, the government and the employer bear one-third of the lost salary
  • The grant will be $ 697.92 per month
  • All small and medium businesses are eligible for the scheme
  • If their turnover declines during a crisis, big business deserves it
  • It is open to employers across the UK, even if they have not used the Furloff scheme before.
  • The project will run for six months from November

New Cliff Edge

Business lobby group welcomes CBI government’s plan

“It’s right to aim for help with future jobs, but it can only be part – time when the need is flat.

However, Torsten Bell, chief executive of the Resolution F Foundation’s Think Tank, said the new employment plan would not “encourage companies to cut hours rather than jobs, because one-third of employer’s contributions to companies mean that it’s cheaper to hire full-time person than two people”.

“But the interaction with the Job 1,000 job retention bonus is very important here,” he said. “Combined with this new scheme, companies now have a great incentive to keep workers part-time until you qualify for the bonus, which means the end of January is October Cliff Edge.”

Image copyright
Getty Images

‘I’m afraid’

Tracy Shepherd has been a cleaner at a leisure center in Essex since the end of March. It is hoped that the new employment assistance scheme itself will help but there is no guarantee.

“They are a very big company I work for but I do not know if they can keep me,” she told the BBC’s World at One.

She said she was scared because her family had recently moved to the area, and this is the only job around child care.

“I do not hear anything [from my employer]. The last thing I heard from them was the start of the lockdown.


VAT cuts for hospitality and tourism companies extend to March The 20% to 5% VAT cut, which came into effect on July 15, will end on January 12 next year.

However, the Food and Drink Federation (FDF) and the new employment scheme have not gone far enough to help the industry affected by the government’s new regulations to curb the rise in corona virus cases.

Pubs and restaurants will have to close from 10pm on Thursdays during the six-month-long process.

FDF Chief Executive Ian Wright said: “We can only avoid long-term unemployment and the deterioration of a sector that will help us recover financially once the epidemic is over, if we continue the targeted Farlow scheme while existing restrictions remain in place.”

Loan repayment

Sunak said the government’s loan scheme would give businesses more time to repay their loans.

The Chancellor said small businesses that have taken “bounce back” loans can use the new pay as you grow. This means that the loan can be repaid in more than 10 years instead of the original six-year term.

Further repayment period is applicable to small and medium enterprises who have taken loans under the Corona Virus Business Interruption Loan Scheme.

The Corona Virus Large Business Interruption Loan Scheme and Future Fund will give businesses more time to apply for these loans. Application dates for various schemes were to end in October and November.

The Furloff project was a bridge to make a living from the crisis. But the bridge needs to reach the other side of the gap for it to be effective.

The Chancellor’s salary subsidy scheme is a continuation of that support – but it’s different and more generous. Because employers will have to pay more than ever before and employees will have to work, it only targets those businesses and posts.

So some workers will slip through this gap: the government wants those in sustainable jobs to think about their next move.

This means that unemployment will rise further – not to the four million that some economists previously feared. The Chancellor’s new plan will cost billions, reducing the $ 320 billion the transit is already facing.

At some point, it may have helped to raise taxes, but today there was no mention of it, because it will take some time for the economy to get stronger to take over.

But the bill now facing the Chancellor may be much smaller than the ultimate price of an economy that does nothing.

Will this scheme benefit you? Do you have any questions about the scheme? Email

If you are willing to talk to a BBC journalist please include a contact number. You can also contact us in the following ways:

  • WhatsApp: +44 7756 165803
  • Tweet: BBC_HaveYourSay
  • Please read our terms, conditions and privacy policy

If you have not read this page and are unable to view the form you will need to visit the mobile version of the BBC website to submit your question or comment or you can email us

Written By
More from Scout Mitchell

Harry Grayson is set to present his final BBC Look North

For more than 40 years, Harry Grayson has said goodbye to TV...
Read More

Leave a Reply

Your email address will not be published. Required fields are marked *