Chancellor Rishi Sunak has unveiled a targeted furlough scheme for the hospitality sector which are affected by infection hotspots.
The government are to pay employees who are unable to work and will pay them 67% of their salaries, up to £2,100 a month. Employees must be off work for a minimum of seven days to be eligible to claim.
Sunak revealed the expansion of the Job Retention Scheme which replaces the furlough scheme.
The Chancellor said, “Throughout the crisis the driving force of our economic policy has not changed.
“I have always said that we will do whatever is necessary to protect jobs and livelihoods as the situation evolves.
“The expansion of the Job Support Scheme will provide a safety net for businesses across the UK who are required to temporarily close their doors, giving them the right support at the right time.”
The expansion to the scheme will start from 1 November and will be reviewed after six months.
Labour hit out at Sunak and said even at this stage the Chancellor “has no plan to support sectors” which are unable to operate.
Labour’s Shadow Chancellor Anneliese Dodds said, “The fact the chancellor is having to tear up his Winter Economic Plan before the autumn is out demonstrates the chaos and incompetence at the heart of government.
“His delay in delivering support has caused unnecessary anxiety and job losses.
“Even at this late stage, he still has no plan to support sectors that are currently unable to operate at full capacity.
“None of this was inevitable if the chancellor had just taken his fingers out of ears and listened to the warnings from Labour and others.”