RISHI Sunak vowed he has no plans to extend furlough cash for businesses beyond September, thanks to Britain’s soaring economic bounce back.
The Chancellor promised there was no need at all to pay Brits’ wages beyond the 18 months the wage-paying scheme has already been in place, despite warnings of thousands of job losses could be at risk.
Mr Sunak said in a LinkedIn event when asked about the end of furlough: “Furlough, we put in place a year ago, our plan for jobns. EVerything I see, shows me that the plan is working.
“Furlough we know has helped save millions of jobs, people have described it as a lifeline, a Godsend.
“The jobs numbers are heading in the right direction.
“Unemployment is expected to be much lower.
“There are no plans to extend furlough, it’s run for a year and a half.
“We made the decision back in March to extend it, quite comprehensively and generously, through to the Autumn. Most people thought, gosh that was a bit long.”
Last week it was revealed that the the fewest amount of people are on furlough since the scheme launched in March 2020 – 1.9million.
Nearly nine million were on at the height of the pandemic last May.
But according to the New Economics Foundation, 660,000 furloughed jobs are likely to still need the scheme – meaning their jobs are at risk.
Furlough rules have already changed in August – meaning government are covering less of the bill, and companies are stepping up their contributions.
The scheme first launched last year at the start of the pandemic to save millions of people from losing their jobs as businesses were forced to close and the economy almost ground to a halt.
Anyone furloughed was given 80% of their wages up to a maximum of £2,500 per month and all of this was covered by the government.
From July 1 the rules changed and the government reduced how much it covered to 70% of wages up to a maximum of £2,187.50.
Employers then had to make up the difference – 10% – so everyone on furlough still got 80% pay, up to £2,500.
