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Government wage subsidies for disabled and vulnerable workers could be drastically scaled back from August under Treasury plans to wind down its Covid-19 furlough scheme, employers’ groups have warned.
Charities and social enterprise employers have been told by the government that its plan to bring the coronavirus job retention scheme to an eventual close this autumn does not currently include an exemption for vulnerable workers.
Rishi Sunak, the chancellor, announced last week that the furlough scheme – under which the government pays 80% of staff wages up to £2,500 a month – would be extended until October. However, state support will be scaled back from August, with employers expected to contribute to maintain a wage packet of at least 80% for furloughed workers.
Although a final decision has yet to be taken, the chancellor is believed to favour a universal approach to scaling back the scheme for all employers, without tailoring it to reflect a gradual return to work for firms and workers.
Charities and social enterprise employers have been told by the government that its plan to bring the coronavirus job retention scheme to an eventual close this autumn does not currently include an exemption for vulnerable workers.
Rishi Sunak, the chancellor, announced last week that the furlough scheme – under which the government pays 80% of staff wages up to £2,500 a month – would be extended until October. However, state support will be scaled back from August, with employers expected to contribute to maintain a wage packet of at least 80% for furloughed workers.
Although a final decision has yet to be taken, the chancellor is believed to favour a universal approach to scaling back the scheme for all employers, without tailoring it to reflect a gradual return to work for firms and workers.
Vulnerable not exempt from furlough winding down, employers told
Charities and social enterprises warned by No 10 not to expect tweaks to Covid-19 job retention scheme
www.theguardian.com