New Job Support Scheme to ease anxieties surrounding the termination of the 'furlough scheme'
September 24th: Chancellor Rishi Sunak announces a New Job Support Scheme starting in November, which is to last for six months. It replaces the 'furlough scheme' that was extended but sees its end in October. This new scheme aims to avoid mass job-loss over the winter period, when COVID-19 cases are expected to rise. This Autumn Budget, (rather called "The Winter Plan") is hoped to help many over the Christmas period too.
The new scheme will pay part of workers' wages who have lost hours of work. The employee, however, must do at least one-third of normal hours, and the government and employer will then pay one-third of the lost hours each.
For the most affected sectors (hospitality and tourism), the 5% VAT cut will be extended until 31 March 2021. Also, all government loans taken during the COVID-19 crisis will be extended.
Sunak's announcement for additional extension of help to the self-employed was also welcomed.
Although all this comes as a beacon of hope for many workers and the self-employed, there is also a warning from a government who is not shy to admit that some "non-viable" jobs unable to survive the crisis, will not be saved this time round.
Source: BBC News