Sunak plans ‘gradual’ wind-down of job support scheme

Rishi Sunak, chancellor, has told MPs he is planning a “gradual” winding down of the government’s hugely expensive job support scheme, in an attempt to avert a surge in unemployment after its scheduled expiry on June 30. Mr Sunak suggested the economy would have to be gradually weaned off tens […]

Rishi Sunak, chancellor, has told MPs he is planning a “gradual” winding down of the government’s hugely expensive job support scheme, in an attempt to avert a surge in unemployment after its scheduled expiry on June 30.

Mr Sunak suggested the economy would have to be gradually weaned off tens of billions of pounds of state support as it recovers from the coronavirus crisis, avoiding what one Tory MP called a convulsive “cold turkey” effect.

The chancellor is discussing with business groups and unions how to phase out the job retention scheme, where the taxpayer currently pays 80 per cent of the wages of furloughed staff up to £2,500 a month. Around 4m jobs have so far been protected under the scheme.

The programme is due to end on June 30 after four months in operation; the Office for Budget Responsibility has estimated it could cost £42bn. But Tory MPs warned on Monday of possible large-scale unemployment if it stopped abruptly.

Mr Sunak, like prime minister Boris Johnson, has been reluctant to set out how the government will exit the current lockdown and economic support packages introduced to offset the effects of coronavirus.

Source Article

Next Post

GM CEO Barra's pay dipped to $21.6 million in 2019

FILE PHOTO: General Motors Chairman and CEO Mary Barra makes a statement as members of the United Auto Workers bargaining committee listen at the start of contract talks between the union and automaker in Detroit, Michigan, U.S., July 16, 2019. REUTERS/Rebecca Cook (Reuters) – General Motors Co (GM.N) Chief Executive […]