Home Business NewsBusiness Furlough scheme extension too late to save jobs – Business needs a consistent winter plan

Furlough scheme extension too late to save jobs – Business needs a consistent winter plan

by LLB Editor
2nd Nov 20 9:47 am

The extension of the furlough scheme may be too late to save  jobs, say leading tax and advisory firm, Blick Rothenberg.

Heather Self, tax partner at Blick Rothenberg, said: “ Employers are supposed to agree any changes to employees’ contracts in advance – how are they supposed to do that at 6 hours’ notice at a weekend?

“ While it is welcome news that additional support is being offered to businesses during the new lockdown restrictions, the change may well come too late to save jobs.”

She added: “  “The Chancellor repeatedly said that the furlough scheme would not be extended, but has now done a last-minute U turn and has postponed the job support scheme for at least a month.  The extension is more generous, but the very short notice is a Hallowe’en nightmare for employers and jobs that could have been saved may now be lost.”

Heather said:  “Businesses need to be able to plan ahead through the winter and into 2021.  We urge the Chancellor to set out a plan to support businesses in the months ahead, rather than reacting on a week by week basis to changing circumstances.”

She added:  “ Employees will receive 80% of their wages from the Government for any hours not worked, with their employer being responsible for national insurance and pension contributions – a cost of around 5% for an employee on average earnings.  This is more generous than the JSS, which only offered a minimum of 67% for closed businesses and 73% for businesses where an employee worked at least 20% of their usual hours.  It is also better than the last two months of the furlough scheme, where employers had to make an additional contribution of 10% or 20% of pay.”

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