The Chancellor of the Exchequer, Rishi Sunak has announced that workers at businesses forced to shut due to stricter lockdown measures will have two-thirds of their salaries paid by the government in the expansion of the UK’s Job Support Scheme.
Chancellor Sunak unveiled the expansion of the Scheme saying: “It will provide a safety net for businesses across the UK who are required to temporarily close their doors, giving them the right support at the right time.
“The government will pay employees who cannot work 67% of their salaries, up to £2,100 a month.”
The scheme will come into force on 1 November and run for six months before being reviewed. Employees must be off work for a minimum of seven days to be eligible.
The chancellor added: “Throughout the crisis the driving force of our economic policy has not changed.
“I have always said that we will do whatever is necessary to protect jobs and livelihoods as the situation evolves.”
The scheme comes amid speculation that England will be divided into three different lockdown tiers next week, with millions of people facing tougher restrictions – particularly in the north – as the government tries to handle rising coronavirus cases.
The new rules are likely to see pubs, cafes and restaurants effectively shut down in the pandemic hotspots.
Labour’s shadow chancellor, Anneliese Dodds expressed displeasure at Mr Sunak’s indecision.
She said, “The fact the chancellor is having to tear up his Winter Economic Plan before the autumn is out demonstrates the chaos and incompetence at the heart of government. His delay in delivering support has caused unnecessary anxiety and job losses.
“Even at this late stage, he still has no plan to support sectors that are currently unable to operate at full capacity.
“None of this was inevitable if the chancellor had just taken his fingers out of ears and listened to the warnings from Labour and others.”
Confederation of British Industry Director-General, Dame Carolyn Fairbairn added, “The chancellor’s more generous job support for those under strict restrictions should cushion the blow for the most affected and keep more people in work.
“But many firms, including pubs and restaurants, will still be hugely disappointed if they have to close their doors again after doing so much to keep customers and staff safe.”
Frances O’Grady, general secretary of the Trades Union Congress, said, “Firms which aren’t required to close but will still be hit by stricter local restrictions need a more generous short-time working scheme. And there needs to be extra help for self-employed people in local lockdown areas too.
“Nationally, industries like the arts, hospitality, retail and aviation face a long, tough winter. These sectors need targeted help. And we need proper investment to create good new jobs in the green tech of the future.”
Federation of Small Businesses national chairman, Mike Cherry asked the government to look beyond Job Support Scheme.
“We now need to look at what comes next in terms of further evolution of support mechanisms, especially for those who will not directly benefit from today’s announcement.
They include those who have been forced to close but don’t occupy premises, as well as those who are being told to stay shut regardless of location – among them bulwarks of our night-time economies and event industries.
“While support is being more closely targeted at certain kinds of businesses, we must be alert to suffering right the way down supply chains.”
