Chancellor expected to take decision on ‘weaning’ workers off furlough scheme
Chancellor Rishi Sunak with Prime Minister Boris Johnson at a media briefing in Downing Street, London, on Coronavirus (COVID-19). Photograph: Matt Dunham/PA Wire. - Credit: PA
Chancellor Rishi Sunak is expected to make a decision on how and when the government's furlough scheme will be phased out this weekend, after an official in Downing Street said people were becoming 'addicted' to it.
Talks on the future of the costly support programme will be held in advance of prime minister Boris Johnson's 'roadmap' announcement on Sunday, the Financial Times says.
At least 6.3 million people are currently having up to 80% of their salaries paid by the taxpayer under the furlough system at a cost of some £8 billion.
Earlier this week, chancellor Rishi Sunak said he was preparing to 'wean' workers and business off the programme amid concerns that the nation was becoming 'addicted' to it.
A senior Tory MP also told the House of Commons that people had been 'too willing' to decide to stay at home.
But there are said to be worries that a shutdown of the scheme in June could put millions of jobs at risk 'if companies were forced to open during weakened economic conditions after the lockdown ends'.
You may also want to watch:
The Financial Times added that ministers have flagged the possibility of the scheme instead being phased out over the coming months 'while also bringing in greater flexibility to allow some workers to return part-time initially'.
Craig Beaumont, director of external affairs at the Federation of Small Businesses, told the paper: 'We really hope to see progress made on a part-time furlough because smaller businesses in particular benefit from being able to quote for new work, keep in touch with employees and pay their invoices.'
Most Read
- 1 Nigel Farage loses nearly 50,000 followers after Twitter suspends QAnon accounts
- 2 Fifteen ways to fix Britain
- 3 Michel Barnier tells UK to be 'very careful' in Brexit diplomatic status row
- 4 This chumocracy is costing our country
- 5 Bob Geldof takes swipe at No 10 saying 'lying is second nature' to them
- 6 Independent SAGE adviser gives scathing assessment of Priti Patel's £800 Covid fines
- 7 George Osborne hopes for Brexit dividend
- 8 Holyrood in talks with EU to extend Erasmus scheme to Scottish students
- 9 Jacob Rees-Mogg says it's 'all the EU's fault' musicians can't tour Europe
- 10 Tory minister admits UK rejected EU's music visa offer in order to 'take back control' of borders
Become a Supporter
The New European is proud of its journalism and we hope you are proud of it too. We believe our voice is important - both in representing the pro-EU perspective and also to help rebalance the right wing extremes of much of the UK national press. If you value what we are doing, you can help us by making a contribution to the cost of our journalism.
