The UK government today unveiled its winter economy plan which will see the current furlough scheme come to an end and be replaced by the Job Support Scheme.
Chancellor Rishi Sunak today unveiled the governments “winter economy plan”, which will see the current Furlough Scheme end on 31st October and be replaced with the Job Support Scheme.
The Job Support Scheme will come into play from November 1st and should bring some welcomed relief for UK manufacturers. The scheme is designed to protect against job losses for businesses being affected by Coronavirus.
The plan will see workers get up to 77% of their normal salaries for six months. Between them, the government and the employer will then cover part of their salary for the remaining hours not worked. The scheme will be capped at £697.92 per month, per employee.
The Chancellor said: “The underlying rationale for the next phase of economic support must be different to what came before. The primary goal of our economic policy remains unchanged: to support people’s jobs.”
“The way we achieve that must evolve. Back in March, we hoped we were facing a temporary period of disruption.”
“In response, we provided one of the most generous and comprehensive economic plans anywhere in the world with £190 billion of support for people, businesses, and public services, as we protected our economic capacity.”
“It is now clear, as the Prime Minister and our scientific advisers have said for at least the next six months the virus and restrictions are going to be a fact of our lives.”
Dame Carolyn Fairbairn, CBI Director-General, said:
“These bold steps from the Treasury will save hundreds of thousands of viable jobs this winter. It is right to target help on jobs with a future, but can only be part-time while demand remains flat. This is how skills and jobs can be preserved to enable a fast recovery.
“Wage support, tax deferrals and help for the self-employed will reduce the scarring effect of unnecessary job losses as the UK tackles the virus. Further business rates relief should remain on the table.
“Employers will apply the same spirit of creativity, seizing every opportunity to retrain and upskill their workers.
“The Chancellor has listened to evidence from business and unions, acting decisively. It is this spirit of agility and collaboration that will help make 2021 a year of growth and renewal.”
Stephen Phipson, Chief Executive of Make UK, said:
“I warmly congratulate the Chancellor for taking decisive action that will help avoid the significant redundancies we were facing had there been a cliff edge end to government support. The priority right now has to be saving as many jobs as possible and this is a bold and brave move which industry will welcome. In particular, the Chancellor should take great credit for reflecting on the experience of other countries and implementing similar measures here; this will help us be strongly competitive as we return to normal trading conditions.
“Building on this, we must also recognise that there are some sectors of manufacturing where there is still not enough demand to even drive part time work. These are viable, often world leading firms, facing a sustained but temporary absence of demand. The aerospace and automotive sectors in particular, along with their supply chains, are leading edge high skill areas which will be the growth sectors of the future.
“I know that the Chancellor shares our concerns and we look forward to discussing what further measures can be brought forward to support these vital sectors for our economy which will be the engines of our future economic success.”