Government set to announce major changes to furlough scheme
At least 6.3 million people are currently having up to 80 per cent of their salaries paid by the taxpayer at a cost of some £8 billion.
Mr Sunak has previously said he was preparing to ‘wean’ workers off the programme - which currently runs until the end of June - but calls have been made for it to be prolonged.
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Hide AdIt has been reported the programme will continue to September, although the rate of support will be cut from a maximum of 80 per cent of salary to 60.
The coronavirus death toll in the UK stood at more than 32,000 yesterday as the Prime Minister said he wants those who cannot work from home to start returning to their workplaces from Wednesday.
Mr Sunak last week warned the furlough scheme was not ‘sustainable’ at its current rate although he promised there would be no ‘cliff edge’ cut-off.
Torsten Bell, of the Resolution Foundation think tank and an early advocate of the scheme, said it should be phased out gradually.
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Hide Ad“Moving too quickly could spark a huge second surge in job losses at a time when unemployment already looks set to be at the highest level for a quarter of a century,” he said.
“This policy has made a huge difference in this crisis. It now needs careful and gradual change to ensure the benefits it has provided are secured rather than squandered.”
Mr Johnson has said he does not expect a sudden ‘flood’ of people heading back to work following Monday's publication of the Government's ‘road map’ for lifting the restrictions.
But this prompted a barrage of questions as to how it could be achieved amid warnings the Government is watering down its clear ‘stay home’ message.
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Hide AdSpeaking at the daily No 10 press briefing on Monday, Mr Johnson said the measures - including allowing unlimited outdoor exercise - were mere ‘baby steps’.
He warned the Government stood ready to reimpose controls if there was any sign of the transmission rate of the virus picking up again.