Answering questions from members of the public, he broke down the timeline for businesses to get back to full capacity month-by-month. The Treasury boss has previously said he plans to “wean” the “addicted” nation off the furlough scheme in an attempt to get people back to work.
One business owner has asked: “I’ve had to furlough 4 members of staff at my business. Are you going to continue to provide support for me to keep these staff on?”
Mr Sunak’s response laid out how the government plans to support businesses as they struggle due to the slowly easing coronavirus lockdowns and an economic downturn.
He said: “I am very conscious employers like yourself need certainty for the future.
“That’s why I’ve set out in detail how we will continue to support businesses like yours through the furlough scheme.”
Rishi Sunak sets out future of furlough.
The Chancellor wants to ‘wean’ Brits off the scheme.
Throughout June and July, the government will continue to pay 80 percent of the wages of furloughed employees.
From July, businesses will be able to bring back furloughed workers part-time, easing them back in.
According to Mr Sunak, in August, the job retention scheme will taper to reflect people returning to work.
The government will still pay 80 percent of wages up to a cap of £2,500, but employers ill begin to make National Insurance and pensions contributions.
Chancellor Rishi Sunak.
n September, the government will decrease their wage contribution to employers by 10 percent, dialling the scheme back to 70 percent.
The cap will also be lowered to £2,190 and employers will be asked to pay the remaining 10 percent as well as pensions and national insurance.
Government help will reduce again in October, when the government will pay 60 percent of wages up to £1,875, with employers topping that number up to 80 percent, as well as pensions and national insurance.
UK unemployment figures released this week revealed there was a decrease of nearly half a million on payrolls last month.
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Many economists expect the number of unemployed people will rise sharply when the furlough scheme comes to a planned end in October.
It has prevented many from losing their livelihoods, but will be dialled down despite the lack of economic recovery expected in the near future.
Yesterday the Bank of England pledged to pump another £100million into the economy to support its recovery. It also kept its benchmark interest rate at 0.1 percent.
In terms of finance and business, it is all hands on deck in the UK to ensure a steady recovery from the economic downturn the coronavirus has wrought.