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  • the government will continue to spend billions of pounds to pay the salaries of millions of workers for months to come as it promised to protect the jobs of those furloughed until October.

  • Now, the Chancellor Rishi Soon ACS, said this scheme introduced to prevent mass redundancies needed to adapt as the economy reopens, employers will have to contribute around 5% of salaries from August, rising to just over 20% before the scheme runs out at the end of October.

  • Now the program currently supports more than 8.5 million employees, with people able to go back to work part time from July.

  • Chancellor also pledged to extend support for the 2.5 million self employed who now receive grants through to August.

  • The estimated cost off both schemes stands at around £100 billion Well.

  • The news comes as the number of people with cove in 19 whose deaths have been reported in the last 24 hours, stood at 324.

  • This brings the total number of deaths to 38,161 with the latest Here's our economic Senator Faisal Islam when the pub stones open needed to the Brewers.

  • And so the government's job scheme has helped hugely keep 8.5 1,000,000 workers on payrolls on tap effectively including here at wild card breweries.

  • But any change to that generosity might push some over the edge.

  • It wouldn't be viable for us for the furlough scheme to diminish on us, to contribute more if we don't have clarity as to what is going on.

  • Because the end of the day, if a bar is closed and there is no money coming in, how are you supposed to financially contribute to that scheme that is just simply going to mean lots and lots of people out of work that leads those A's and 1/2 1,000,000 workers will now continue to get the bulk of their wages paid for by the taxpayer in July.

  • This can now be on a part time basis, offering flexibility for companies phasing workers back to work.

  • In August, the government will continue to pay 80% of salary, but firms will have to pay national insurance and pensions about 5% on average, that in September the taxpayer contribution will go down to 70% and then 60% in October.

  • A further 2.5 1,000,000 self employed workers at least will be eligible for a slightly less generous grant.

  • Representing 70% of wages over three months capped it 6.5 £1000 the car industry today revealed and 99.7% slump in sales in April.

  • That's one reason why the total cost of both these unprecedented schemes is heading towards £100 billion of essentially borrowed money.

  • About the same as is spent over that eight month period is on the NHS.

  • But the chancellor says it's still value for money, first of all, in aggregate.

  • The scheme is, I think, very generous.

  • Eight months is a long time toe have the support.

  • If you look at the total employer contribution over that entire period on a typical employees average employee on the scheme, it will amount to the employer making a 5% contribution.

  • The opposition says it's taking risks with unemployment.

  • Some sectors like, for example, hospitality, look like they could be locked down for really quite a long time.

  • They're not going toe.

  • Have the cash flow necessarily have employers paying in to support staff, so this could lead potentially to major job losses.

  • The government has a delicate three way balancing act between controlling the pandemic, saving jobs and the cost to the taxpayer.

  • It's essential judgment today is to carry on spending generously mawr than expected, and that means 1/3 of the workforce 11 million workers will continue tohave the vast bulk of their wages funded by the taxpayer for most of the year.

  • The's self employed, like Iona Pfeiffer, folk singer who feel relieved by the announcement, yes, but still concerned about the future.

  • First, I am very much appreciated that we're going to be supported until August.

  • I worry about my ability to keep shooting and keep being in possession, especially after years and years of training and graduating with a degree in music.

  • It's very hard thing.

  • But the Treasury say that the self employed were already treated differently, for example, being allowed to carry on working while claiming the support.

  • The message from the chancellor that his spending will continue through this summer.

  • But as the economy reopens, it must then come to an end.

  • Faisal Islam BBC News Our chief political correspondent, Vicki Young, is at Westminster.

  • Vicky.

  • These schemes, they've been saved millions of jobs.

  • They're very popular.

  • Tricky then for Mr Soon AC to be changing them.

  • Yeah, I think the charter might look back and think while announcing all that help with broad political backing.

  • Well, that might have bean the easy bit, taking it away even gradually without causing a real spike in unemployment that could well be a lot more difficult now.

  • He's talked before about the country heading for a recession.

  • Today, he talked about hardship because he can't save every job.

  • And there are many who think that crunch point could be coming quite soon.

  • Just look at the hospitality industry.

  • You have a restaurant.

  • You haven't had income for months.

  • You got no guaranteed opening date.

  • You've got no guarantee that customers will come back in the same way.

  • There could be social distancing restrictions.

  • So even conf attributing a tiny part off the wages in August might not be remotely possible.

  • Now the government is being dealing with this terrible health crisis.

  • It looks like there's an economic one coming down the track.

  • There's been massive state intubate invention, really like a huge dose of painkiller.

  • But the Chancellor today, making it clear that is going to hurt when it wears off.

  • Okay, Vicki.

  • Thank you.

  • Vicki Young, that Westminster.

the government will continue to spend billions of pounds to pay the salaries of millions of workers for months to come as it promised to protect the jobs of those furloughed until October.

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Scheme paying millions of salaries extended to October by Chancellor - BBC News

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    林宜悉 posted on 2020/07/02
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