In his third Covid bailout in just over a week, Chancellor Riski Sunak has shifted his focus from businesses to employees with an unprecedented three-month commitment to cover the bulk of pay for workers facing redundancy. He’ll cover up to 80 per cent of all salaried workers’ wages (up to £2,500 per month, around the UK’s medium income). This is a blanket pledge, an unprecedented intervention on the part of the government that will see the state pay private businesses – big and small – to retain their employees for the foreseeable future.
The ‘Job Retentions Scheme’ is not targeted specifically at vulnerable sectors – presumably because any targeted scheme requires some form of means testing, which takes time. As a result, every employer can now apply to have a large part of their employees’ salaries covered by the state.
Sunak says he’ll do whatever is necessary – ie, borrow what’s necessary – to support Britain through Covid-19.
Get Britain's best politics newsletters
Register to get The Spectator's insight and opinion straight to your inbox. You can then read two free articles each week.
Already a subscriber? Log in
Comments
Join the debate for just £1 a month
Be part of the conversation with other Spectator readers by getting your first three months for £3.
UNLOCK ACCESS Just £1 a monthAlready a subscriber? Log in