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| Coronavirus: Primark says no to £30m job retention bonus | Coronavirus: Primark says no to £30m job retention bonus |
| (about 7 hours later) | |
| Primark said it will not take advantage of a £30m handout from the government, potentially putting pressure on other major firms not to take taxpayer money. | |
| Chancellor Rishi Sunak announced last week that all businesses will be paid £1,000 for each employee they bring back from furlough. | Chancellor Rishi Sunak announced last week that all businesses will be paid £1,000 for each employee they bring back from furlough. |
| Primark placed around 30,000 workers on the government's coronavirus job retention scheme. | Primark placed around 30,000 workers on the government's coronavirus job retention scheme. |
| But it said it has now brought them all back and would not ask for the payment. | |
| "The company removed its employees from government employment support schemes in the UK and Europe in line with the reopening of the majority of its stores," said a spokesperson for Primark's owner Associated British Foods. | "The company removed its employees from government employment support schemes in the UK and Europe in line with the reopening of the majority of its stores," said a spokesperson for Primark's owner Associated British Foods. |
| "The company believes it should not be necessary therefore to apply for payment under the bonus scheme on current circumstances." | "The company believes it should not be necessary therefore to apply for payment under the bonus scheme on current circumstances." |
| Announcing the Job Retention Bonus in last week's summer economic update, Mr Sunak said: "One of the most important things we can do to prevent unemployment is to get as many people as possible from furlough back to their jobs." | Announcing the Job Retention Bonus in last week's summer economic update, Mr Sunak said: "One of the most important things we can do to prevent unemployment is to get as many people as possible from furlough back to their jobs." |
| Companies can get a £1,000 per person bonus if they bring back an employee from furlough for at least three months after the government's wage payment scheme ends in October. | Companies can get a £1,000 per person bonus if they bring back an employee from furlough for at least three months after the government's wage payment scheme ends in October. |
| There are currently 9.4 million on the government's furlough scheme who, if they all returned to work, could cost the public purse more than £9bn in bonus payments. | There are currently 9.4 million on the government's furlough scheme who, if they all returned to work, could cost the public purse more than £9bn in bonus payments. |
| Mr Sunak said the Job Retention Bonus scheme would be open to "all" companies. | Mr Sunak said the Job Retention Bonus scheme would be open to "all" companies. |
| But Labour leader Sir Keir Starmer criticised the scheme for not being targeted on those companies that needed it most. | But Labour leader Sir Keir Starmer criticised the scheme for not being targeted on those companies that needed it most. |
| While he agreed that the government "is right to act", he said: "Our concern is the action they've taken isn't focused on the right places, so the Jobs Retention Bonus is a bonus for all jobs and many of those jobs, many of the people would have been brought back in any event. | While he agreed that the government "is right to act", he said: "Our concern is the action they've taken isn't focused on the right places, so the Jobs Retention Bonus is a bonus for all jobs and many of those jobs, many of the people would have been brought back in any event. |
| "Some are really at risk of losing their jobs, so we say it should have been targeted in the areas that most need it." | "Some are really at risk of losing their jobs, so we say it should have been targeted in the areas that most need it." |
| Jim Harra, chief executive of HMRC and the Treasury's principal accounting officer, refused to sign off on the measure, telling the Chancellor in a letter that it does not represent "value for money". | Jim Harra, chief executive of HMRC and the Treasury's principal accounting officer, refused to sign off on the measure, telling the Chancellor in a letter that it does not represent "value for money". |
| It is not yet clear if other companies will apply for the bonus. John Lewis is thought unlikely to take part in the scheme, although the retailer has yet to make a formal announcement. | It is not yet clear if other companies will apply for the bonus. John Lewis is thought unlikely to take part in the scheme, although the retailer has yet to make a formal announcement. |
| A spokesperson for M&S said it "welcomed" the support shown for businesses during the pandemic. | A spokesperson for M&S said it "welcomed" the support shown for businesses during the pandemic. |
| "However, at this stage, it's too early to confirm our plans to use the furlough bonus scheme announced by the chancellor earlier this week." | "However, at this stage, it's too early to confirm our plans to use the furlough bonus scheme announced by the chancellor earlier this week." |
| M&S said in May it had put 27,000 staff on furlough who are being brought back on a gradual basis. | M&S said in May it had put 27,000 staff on furlough who are being brought back on a gradual basis. |
| McDonald's said it is "still working through the details of the chancellor's announcement" and is unable to comment. | McDonald's said it is "still working through the details of the chancellor's announcement" and is unable to comment. |
| Primark said it lost sales of around £650m a month through shutting shops because of the coronavirus pandemic. | Primark said it lost sales of around £650m a month through shutting shops because of the coronavirus pandemic. |
| The retailer started to reopen European stores in early May. It then reopened all 153 of its shops in England on 15 June. | The retailer started to reopen European stores in early May. It then reopened all 153 of its shops in England on 15 June. |
| What do I need to know about the coronavirus? | What do I need to know about the coronavirus? |