New Job Support Scheme unveiled by UK Chancellor to stop mass unemployment
Chancellor Rishi Sunak has announced the Jobs Support Scheme, replacing the job retention furlough scheme, giving people in work three quarters of their normal salaries for six months.
The UK government will be topping up wages of workers who have not been able to return to the workplace full time due to the coronavirus, instead of paying people to stay at home.
Sunak hopes the new £300 million a month package, starting on 1 November, will prevent mass job cuts when the furlough scheme ends next month on 31 October.
Around three million workers representing 12% of the UK workforce, are benefiting from partial or full furlough leave, according to figures.
The government wants to support the wages of people in work, giving viable “businesses who face depressed demand the option of keeping employees in a job on shorter hours, rather than making them redundant," Mr Sunak said.
He will "support only viable jobs" as opposed to jobs that only exist because the government is continuing to subsidise the wages, adding that he "cannot save every business and save every job."
Mr Sunak also offered businesses that have borrowed money through the government's loan scheme more time to repay the money.
The VAT cut for hospitality and tourism companies will be extended until March.
The chancellor announced that small businesses who took out "Bounce Back" loans can use the new “Pay as You Grow” flexible repayment system, which means repayments on borrowings can be spread over 10 years instead of the original six-year term.
The government rescue packages since March are the largest series of measures since the second world war, leaving the UK with a £300 billion deficit.
Meanwhile, the stock and property markets remain high and employers welcomed the new job scheme.
Other articles available at Money Tips Podcast - www.moneytipsdaily.com
Millions of people face a bleak future post-Coronavirus lockdown, as businesses disappear and the job furlough scheme eventually comes to an end. However, life doesn’t have to end because of lockdown! You can join thousands of ordinary people who have increased their income and added streams of new income during this period.
Are you ready to adapt to the new economic model?
As lockdown restrictions around the world are being eased, the economic model has subtly changed forever. How will you adapt to this new way of working and running a business, what obstacles and opportunities lies ahead? Will you be a participant or spectator in this revolution?
By Charles Kelly, Wealth Mentor, Property Investor, Author of Yes, Money Can Buy You Happiness and creator of Money Tips Podcast.
There are more examples and practical steps to getting rich and being happy in my book, Yes, money can buy happiness, I cover the 3 R’s of Money Management, the Money B.E.L.I.E.F System and much more. Check it out on Amazon http://bit.ly/2MoneyBook.
If you’d like further information on wealth mentoring and coaching, how to survive the crisis and even quit the rat race, email me at Charles@CharlesKelly.netor send me a message through Facebook or my Money Tips Daily community. See more articles at www.moneytipsdaily.com