December 26, 2024

Chancellor to unveil latest Covid support measures

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Posted at 11:2211:22

What support is there for jobs during lockdown?

Chancellor Rishi Sunak is expected to say more about support for jobsImage caption: Chancellor Rishi Sunak is expected to say more about support for jobs

Later this morning, we’re expecting to hear from Chancellor Rishi Sunak about support for jobs during the pandemic. But what’s the situation now?

Announcing England’s lockdown, the prime minister said the Coronavirus Jobs Retention Scheme – the official name for the furlough scheme – would be extended for an extra month.

Under this scheme, workers placed on leave by their employers receive 80% of their pay, up to a maximum of £2,500 a month.

Since July, employers have also been able to bring employees back to work part-time, and furlough them for the rest. This will continue.

In recent months, firms have had to top up furloughed wages by 20%, with the government paying 60%.

Now, the state will put in the full 80%, with the employer only covering pension and national insurance contributions. But workers shouldn’t notice any difference.

The furlough scheme had been due to end on 31 October, to be replaced by the Job Support Scheme.

Intended to help industries shut down by the three-tier system of restrictions, it offers workers 67% of their wages up to a maximum of £2,083.33 a month, without requiring a contribution from employers.

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