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Coronavirus: Millions to claim as UK furlough scheme goes live | |
(about 8 hours later) | |
A government pay scheme to keep staff on the payroll despite not working due to coronavirus has gone live. | |
Under the Coronavirus Job Retention Scheme, the government will cover 80% of workers' wages, up to £2,500 a month, if they are put on leave. | Under the Coronavirus Job Retention Scheme, the government will cover 80% of workers' wages, up to £2,500 a month, if they are put on leave. |
Chancellor Rishi Sunak said: "We promised support would be available by the end of April - today, we deliver our promise." | |
Millions of workers are expected to be "furloughed" because of the lockdown. | Millions of workers are expected to be "furloughed" because of the lockdown. |
The Treasury says the system can process up to 450,000 applications an hour. Employers should receive the money within six working days of making an application, it says. | |
'Payday approaching' | 'Payday approaching' |
On Friday, Mr Sunak announced that the wage subsidy scheme would be extended by a further month, until the end of June. | On Friday, Mr Sunak announced that the wage subsidy scheme would be extended by a further month, until the end of June. |
The move came after the government confirmed that lockdown restrictions in the UK would continue for "at least" another three weeks. | The move came after the government confirmed that lockdown restrictions in the UK would continue for "at least" another three weeks. |
Adam Marshall, director general of the British Chambers of Commerce, said: "With April's payday approaching, it is essential that the application process is smooth and that payments are made as soon as possible. | Adam Marshall, director general of the British Chambers of Commerce, said: "With April's payday approaching, it is essential that the application process is smooth and that payments are made as soon as possible. |
"Any delay would exacerbate the cash crisis many companies are facing and could threaten jobs and businesses," he added. | "Any delay would exacerbate the cash crisis many companies are facing and could threaten jobs and businesses," he added. |
How does the scheme work? | How does the scheme work? |
Under the Coronavirus Job Retention Scheme, the government will cover 80% of workers' wages, up to a maximum of £2,500 per worker, per month before tax. | Under the Coronavirus Job Retention Scheme, the government will cover 80% of workers' wages, up to a maximum of £2,500 per worker, per month before tax. |
Bosses will pay workers and reclaim the money from HM Revenue and Customs (HMRC) online after the service goes live on 20 April. | Bosses will pay workers and reclaim the money from HM Revenue and Customs (HMRC) online after the service goes live on 20 April. |
The minimum amount of time that an employee can be furloughed is three weeks, and firms are not expected to start receiving money until at least the end of April. | The minimum amount of time that an employee can be furloughed is three weeks, and firms are not expected to start receiving money until at least the end of April. |
Read more here. | Read more here. |
According to new research by the Resolution Foundation, the take-up of the scheme has been higher than initially anticipated. | According to new research by the Resolution Foundation, the take-up of the scheme has been higher than initially anticipated. |
It estimates that eight million workers could be furloughed over the coming weeks. | It estimates that eight million workers could be furloughed over the coming weeks. |
It found that those working in low-paid sectors - such as hospitality or retail - are worst-affected, with almost half of the workforce expected to be put on paid leave. | It found that those working in low-paid sectors - such as hospitality or retail - are worst-affected, with almost half of the workforce expected to be put on paid leave. |
Daniel Tomlinson, economist at the Resolution Foundation, said: "The government's welcome Job Retention Scheme is what stands between Britain experiencing high unemployment over the coming months, and catastrophic depression-era levels of long-term joblessness. | Daniel Tomlinson, economist at the Resolution Foundation, said: "The government's welcome Job Retention Scheme is what stands between Britain experiencing high unemployment over the coming months, and catastrophic depression-era levels of long-term joblessness. |
"It is proving particularly essential in big, low-paying sectors like hospitality and retail, where around half the workforce are no longer working." | "It is proving particularly essential in big, low-paying sectors like hospitality and retail, where around half the workforce are no longer working." |
High Street chains such as Oasis and Warehouse, as well as fast food firms KFC and McDonald's, have all furloughed staff as their work has come to a standstill under lockdown. | High Street chains such as Oasis and Warehouse, as well as fast food firms KFC and McDonald's, have all furloughed staff as their work has come to a standstill under lockdown. |
Rain Newton-Smith, chief economist at the CBI business lobby group, welcomed the launch of the online application service for firms. | |
"Rolling out the job retention scheme will make a huge difference to tens of thousands of firms and millions of people, protecting jobs and living standards throughout the UK," she said. | "Rolling out the job retention scheme will make a huge difference to tens of thousands of firms and millions of people, protecting jobs and living standards throughout the UK," she said. |
"Ensuring support gets to where it's needed most - fast - is of the utmost importance." | "Ensuring support gets to where it's needed most - fast - is of the utmost importance." |