One of the most generous Covid-19 emergency measures in Europe has been extended until the end of October – with some caveats. Chancellor Rishi Sunak has just told the House of Commons that the furlough scheme – which covers up to 80 per cent of an employees’ wages, with a cap of £2,500 per month – will continue to operate unchanged between now and the end of July. From August, furloughing will become more flexible, allowing for part-time work. The scheme remains extended to all sectors, avoiding the optics of industry favouritism, which could easily extend to regional favouritism, given the dependence on certain sectors in different parts of the UK.
At first, the scheme was intended for lockdown. Now, furlough might be needed in the new era where businesses become ‘Covid-secure’ with less space for employees in the office. These limitations could result in widespread layoffs as employers don’t need or simply can’t fit as many staff in their premises as before.
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