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The Government is considering reducing the proportion of workers’ wages it pays under the coronavirusfurlough scheme from 60% to 60%
The initiative now supports the wages of 6.3 million employees, almost a quarter of Britain’s private sector workforce, who have temporarily stopped working at a cost of around £ 8 billion.
In total, it is estimated to have cost the Treasury £ 30 billion, and Chancellor Rishi Sunak warned that it is costing the government levels similar to the NHS.
Support will stop in late June, after being extended for a month.
Finance Minister Rishi Sunak said Monday that there would be a sudden precipice in June, but that he was looking for the best way to phase out the plan and make it easier for people to return to work “in a measured way.”
According to the Evening Standard, a leading option is to reduce the proportion of salaries of suspended personnel that the government pays to employers from 60% to 60%.
Employers are encouraged to make up the difference, but are not required to do so. Another approach would be to allow some staff on sick leave to work, but with a smaller allowance for taxpayers.
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Britain’s finance ministry declined to comment on possible options to liquidate the scheme.
The government must review the closure on Thursday and the prime minister Boris Johnson is expected to provide further details of his approach on Sunday.
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Under the second phase of the government’s plan, schools may be partially reopened, while some nonessential stores and businesses may also be given the green light to re-trade.
The Job Retention Plan (JRS), the official name of the license, now covers almost a quarter of jobs in the UK, 23% of the employed workforce.
Approximately 2.5 million people signed up for the plan last week, bringing the total number of claims to 6.3 million.
On Tuesday, Rishi Sunak warned the public that his spending level “is not sustainable.”
He said ministers are in talks to close the scheme as more people return to work.
“I am working as we speak to discover the most effective way to reduce the scheme and make it easier for people to return to work in a measured way,” he said.
“As some scenarios have suggested, we are potentially spending as much on the licensing scheme as we do on the [National Health Service] for example. Now, clearly, that is not a sustainable solution. “
But he added that despite concerns about funding, people would return to work in a “measured” way without “any advantage to the licensing plan.”
According to Liberal Democrats, there should be a “tapered” end to the program, with the Treasury paying 50% of wages in the first month after people return to work, falling to 30% after the third month, with employers. picking up the complete Invoice after the fourth.
Under the current JRS scheme, the Government will cover 80% of wages, and employers will have the option to pay the remaining 20%.
Over the past month, it attracted thousands of plaintiffs, with 800,000 companies now in the scheme.
However, some companies have been criticized for exploiting the support, designed to help struggling companies and avoid layoffs.
Richard Branson is among a list of billionaires who have applied for state support, despite not paying a penny income tax since he moved to his Caribbean island of Necker.
Troubled airline British Airways, Wetherspoons and Arcadia, owned by Philip Green, have also requested funds for taxpayers.
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