And Germany in extending furlough scheme
no one is being let go without need.”
The UK furlough scheme is scheduled to end in October. From this month employers have had to contribute towards its cost, first with pension and national insurance contributions, and with 10% and then 20% of wages in the next two months.
The Chancellor, Rishi Sunak, said that the decision to wind down the UK furlough was “one of the most difficult decisions” he had had to make. But he said it was not sustainable, and that most other countries were making similar moves to wind down their schemes.
The UK scheme paid 80% of wages, up to £2,500 a month, for about 9.5 million employees at its peak. The total cost to date is nearly £35bn.
Germany’s furlough scheme is modelled on a programme that won the country praise during the 200809 financial crisis.
It is essentially an unemployment benefit paid out to companies by the government’s Federal Employment Agency, designed to compensate lost earnings for workers who have been temporarily placed on reduced hours, and help companies avoid cutting jobs.
A Welsh Government spokesman said: “We have been urging the UK Government to take a targeted approach to protect people and jobs, including the extension of the crucial furlough scheme until we are through the worst of the crisis.
“Only the UK Government has the firepower to extend the furlough scheme, a move that could save thousands of jobs in our most at risk sectors.”
A UK Government spokeswoman said: “The Coronavirus Job Retention Scheme will have been open for eight months from start to finish – with the
UK Government helping to pay the wages of over 9.6 million jobs so far.
“But we’ve been clear that we can’t sustain this situation indefinitely and must now focus on providing fresh work opportunities for those in need across the UK.
“We will continue to support businesses bringing back staff through the £1,000 job retention bonus, while our Plan for Jobs will drive our economic recovery by creating new roles for young people and new incentives for training.”