Government steps in to pay staff wages for businesses in an unprecedented COVID-19 measure
In an extraordinary move to protect employees’ jobs across the private sector, chancellor Rishi Sunak has announced that government will pay grants covering up to 80 per cent of the salary of workers kept on by companies and not working due to coronavirus.
The announcement will come as a much-welcomed intervention as mobility retailers, manufacturers and distributors face an unparalleled fall in demand, leading to critical cash flow problems for many in the industry.
Already, the sector has seen companies take the difficult decision to lay off staff in a fight to keep companies afloat and this latest measure aims to save employee’s positions.
In the press conference, the chancellor announced that the grants would be up to £2,500 per month, just above the median income and follows several support measures introduced to help businesses through this difficult time.
“Today I can announce that in the first time of our history, the Government is going to step in and help pay people’s wages,” declared Sunak.
“We’re setting up a new coronavirus job retention scheme. Any employer in the country small or large, charitable or non-profit, will be eligible for the scheme.
“Employers will be able to contact HMRC for a grant to cover most of the wages of people who are not working but are furloughed and kept on payroll rather than being laid off.
“Government grants will cover 80% of the salary of retained workers up to a total of £2,500 a month – that’s just above the median income.”
In addition to the supporting salaries, the government is also postponing VAT payments for the next quarter to help companies across all sectors survive, as well as extending the Coronavirus Business Interruption Loan scheme’s free interest rate period from six-months to 12 months.
How will the Coronavirus Job Retention Scheme work:
According to the chancellor, companies will be able to apply to HMRC to pay the wages of people who are not working due to coronavirus shutdowns but have not been let go.
This not only includes the private sector, with organisations, including charitable ones, able to apply for a grant from HMRC to cover the wages.
THIIS will provide more information and details as it is releasedhttps://thiis.co.uk/government-steps-in-to-pay-staff-wages-for-businesses-in-an-unprecedented-covid-19-measure/https://i2.wp.com/thiis.co.uk/wp-content/uploads/2019/10/money-national-living-wage-comment.jpg?fit=1000%2C639&ssl=1https://i2.wp.com/thiis.co.uk/wp-content/uploads/2019/10/money-national-living-wage-comment.jpg?resize=150%2C150&ssl=1Government & LegislationInvestments & FundingNewsroomRetailer NewsSector NewsSupplier NewsTrade NewsIn an extraordinary move to protect employees’ jobs across the private sector, chancellor Rishi Sunak has announced that government will pay grants covering up to 80 per cent of the salary of workers kept on by companies and not working due to coronavirus. The announcement will come as a much-welcomed...Calvin BarnettCalvin Barnettcalvin@thiis.co.ukAdministratorTHIIS Magazine