IT FIRM FOUNDED BY CHANCELLOR’S FATHER-IN-LAW FURLOUGHS UK STAFF
INDIAN software major Infosys is among the many UK companies to benefit from chancellor Rishi Sunak’s Coronavirus Job Retention Scheme, it emerged last Sunday (31).
Infosys, co-founded by Sunak’s father-in-law Narayana Murthy, said it had used the furlough – or forced leave – option for three per cent of its staff in order to tide through the lockdown imposed to curb the spread of the virus.
“In light of the situation, Infosys has furloughed three per cent of its UK workforce. We are reviewing this on a weekly basis,” Infosys told The Sunday Times.
The scheme was unveiled by the chancellor whose wife Akshata is Murthy’s daughter, at the peak of the crisis and is set to gradually wind down until it is fully closed at the end of October.
Under the provisions, the government covers 80 per cent of salaries of furloughed staff, up to the value of £2,500 a month, in order to prevent companies having to resort to redundancies.
Some 8.4 million workers at around one million companies in Britain have benefited from the scheme so far, costing the government £15 billion.
In a latest set of announcements last month, Sunak added more flexibility into the programme so that employers can make use of the scheme in the most effective way.
Sunak said employers will need to pay national insurance contributions from August, 10 per cent of wages in September and 20 per cent in October, before the furlough scheme ends.
“Our top priority has always been to support people, protect jobs and businesses through this crisis. The furlough and self-employment schemes have been a lifeline for millions of people and businesses,” he said.
“We stood behind Britain’s businesses and workers as we came into this crisis and we stand behind them as we come through the other side. Now, as we begin to re-open our country and kickstart our economy, these schemes will adjust to ensure those who are able to work can do so, while remaining among the most generous in the world.”
In addition, Sunak said the selfemployment income support scheme will continue into August, when freelancers can apply for a second grant of up to £6,570.
The scheme, which pays three months’ worth of average monthly profits, has so far seen 2.3 million claims worth £6.8 billion.
Individuals could claim up to £7,500 under the first grant, which was launched in May.
Sunak also announced that firms would be allowed to return workers part-time from July without risk of losing out financially, rather than August as had initially been suggested. He added the “new, more flexible furlough” was a key part of the government’s plan to “kickstart the economy”.
A report last Thursday (28) by the Institute of Directors business lobby group showed that a quarter of companies believe they cannot afford to pay the 20 per cent furlough contribution.
However, the Confederation of British Industry (CBI) welcomed the announcement, following reports the support measures could be wound up even faster.
“Firms understand the scheme must close to new entrants at some point and that those using it in future will need to make a contribution to help manage the costs,” CBI Director-General Carolyn Fairbairn said.