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Thousands return to work tomorrow, as fears of job and health risk grow.
There is concern that the lack of social distancing at work and on public transport could spread the virus.
And the big job losses could be triggered in the summer when Rishi Sunak cuts license support for companies.
Labor leader Keir Starmer said: “If this is not handled carefully, there is a real risk of mass layoffs.”
Millions of workers could still face layoffs this fall after the government revealed an extension to the job retention scheme.
Sunak said the support package for 7.5 million workers will continue until the end of October, after pressure from unions and companies to avoid a wave of job losses.
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With hundreds of thousands returning to work tomorrow, the chancellor said the scheme, which pays 80% of a worker’s salary up to a monthly limit of £ 2,500, will remain unchanged until the end of July.
Employers are expected to share the billion of pounds.
Bosses will have more flexibility for staff to return to part-time work, but will have to wait until the end of the month for more details.
But business groups and unions called for urgent clarity on how much employers are expected to pay after it emerged that even companies forced to remain closed would have to contribute.
Meanwhile, freelancers may start receiving payments to make up for next week’s loss of earnings.
Applications open tomorrow, and Mr. Sunak said the three-month support package could be extended if necessary.
(Image: Northern News)
The government pinned hopes of a return to normality in a new contact tracking app, which it promises will be operational in mid-May.
It occurs when 627 other people who died from Covid-19 were registered after testing positive, bringing the official total to 32,692. And new figures show four out of ten recent coronavirus deaths occurred in nursing homes.
Ministers are concerned that outbreaks of nursing homes may spread to the population and force new closings.
About 935,000 companies have signed up to the licensing plan, some in industries that will have a hard time getting back to normal and have already started laying off staff.
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(Image: PA)
Fears had risen that businesses would hit the edge of a cliff in June if the plan ended without an extension, and hotel and retail companies were the hardest hit.
But there is also concern about the cost of the scheme, which according to the chancellor amounts to £ 8 billion a month and experts have predicted that it could exceed £ 80 billion in October.
Mr Sunak told parliamentarians today: “I am expanding this scheme because I am not going to give up on people who trust it.
“We support the workers of Great Britain when we enter this crisis, and we will support them as we go through the other side.”
Treasury confirmation that companies will have to “share the load” by offsetting 80% of suspended staff pay runs the risk of getting a large bill.
And for those who are still closed, and where trade is struggling to recover, the sudden cost could be terminal.
Starmer added: “The job demanded the leave plan and has been a lifeline for workers and companies.
“Removing it when the virus is still very present would have been dangerous and wrong. It is correct that the government has heeded the warnings.
“But there are big problems. We urgently need clarity on the contributions that employers are expected to make. ”
Treasury experts have admitted that they expected the initial collection to be much lower, closer to 1 million people. But almost a quarter of all workers in Britain were laid off by their employers in the first two weeks in mid-April.
Mr. Sunak condemned government sources that reported that ministers feared that some might become “addicted” to the plan.
“People across the country believe in the dignity of their work,” he said. “It is not their fault that they have been asked to close their businesses.”
Business groups and unions welcomed the extension, but echoed Starmer’s call for details on how much companies will pay.
Edwin Morgan of the Directors Institute said: “We need more clarity on employer contributions. Many companies that would normally be in a strong position are still in dire straits.”
The National President of the Small Business Federation, Mike Cherry, said: “We need to make sure those obligations are affordable for the many companies that have not received an income but have fixed costs to worry about.”
TUC general secretary Frances O’Grady said the extension “will be a great relief to millions.”
But he added: “As the economic consequences of Covid-19 become clear, unions will continue to push for an employment guarantee scheme to make sure everyone has a decent job.”
GMB Acting Secretary General John Phillips welcomed the extension, but cautioned: “Confusing advice about who should be working means that many well-meaning employers, who want to keep their staff free, will find themselves competing with unscrupulous companies that they want to drag their staff before it’s safe to do so. “
Data from the Office of National Statistics for the last week of April shows that nursing homes are now the epicenter of the outbreak.
Of the 6,035 Covid-19 related deaths recorded in the week ending May 1, some 2,423 (40%) were in nursing homes, compared to 3,214 (53%) in hospitals.
However, this weekly number of nursing home deaths was a slight decrease of 2,794 in the previous seven days, the first weekly drop since March 20.
Exercise
Unlimited outdoor exercise will be allowed, with the above ‘once a day’ rule removed
Tan
People will be allowed to sit in parks and beaches as long as they are within two meters of other people.
Drive
Boris Johnson said in his Sunday night speech that people will be able to drive to other destinations starting Wednesday, presumably to exercise there, although more detailed plans are likely to follow.
Meet others
Starting May 13, people can meet a friend or relative from a different home in a public place, as long as they are two meters away. Gatherings of more than two people are still prohibited, so people cannot meet their parents, for example.
Play golf and tennis
Golf courses and tennis courts will reopen from May 13, with a relatively easy social distancing to achieve, although you can only play with people in your home. Team sports, such as soccer, are unlikely to be encouraged as social distancing is difficult and would require more people than the average home.
Fishing and swimming
Angling and water sports will also be allowed to resume in England starting on Wednesday. Again, you must be inside your own home and two meters from other people.
Back to work
Instead of a change in the rules, the government is now encouraging people to return to work if they cannot do it from home. But they also urge people to drive, walk, or bike to work instead of using public transportation, if possible
Officially recorded Covid-19 deaths through May 1 totaled 33,408 with 8,312 of them in nursing homes, the ONS said.
Separate numbers provided by nursing homes to regulators in England and Wales suggest that the actual number is much higher.
Meanwhile, health and safety inspectors have not closed any firms since the coronavirus occurred, despite being notified of the deaths of 71 employees.
HSE Executive Director Sarah Albon said the body had received 7,149 coronavirus-related inquiries from people concerned about being at risk on the job.
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