Workers’ relief over furlough

Government support extended

CHANCELLOR RISHI Sunak’s announcement that the Government’s job retention scheme has been extended until October – and workers will not see any further drop in their pay – will be a welcome relief for the millions of people who have been furloughed by their companies where work has dried up due to the coronavirus crisis, particularly given previous reports that the scheme could taper to cover just 60 per cent of wages.

Mr Sunak confirmed in the Commons that the 80 per cent figure would still stand but from the end of July, employers will be expected to start footing some of the salary bill.

The programme has already cost the taxpayer £10bn and, whilst coronavirus has created significant tests of public fortitude, the scheme itself tests the British moral compass. Businesses with billions of pounds to their name would be wise to reflect on whether or not it is appropriate to be taking public money in cases where the business itself could keep people paid.

Mr Sunak has been good enough to provide a rescue package that for many firms and individuals has been a lifeline. However, just because it is there does not mean that it should be taken; it is for those people whose livelihoods would otherwise have disappeared in the pandemic – not for bank-rolling millionaires.

Employers will, no doubt, be waiting for more details to emerge later this month about their input to the scheme. For, whilst the British Chambers of Commerce Director General said the extension would be a “huge” help and relief for businesses, Shadow Chancellor Anneliese Dodds has warned there could be a real risk of “mass redundancies” if they are suddenly required to make a “substantial contribution” from August.

Clearly, consultation between employers and the Government will be key to protecting jobs and livelihoods as the nation slowly reopens for business.