UK government through Chancellor has announced wages/salaries top up for both private and government workers covering up to two-thirds of their hours for the next six months.
Sunak Rishid stressed that the Jobs Support Scheme will replace the furlough scheme when it ends on 31 October.
He set out his “winter economy plan” after the government introduced new measures to stop the spread of the coronavirus.
Before this pronouncement, there were fears firms are going to make mass job cuts when the furlough scheme ends.
According to National Statistics, nearly 3 million workers of the UK’s workforce – are on partial or full furlough leave.
The chancellor said that employees will have to work for at least a third of their normal hours to qualify for the new scheme, which begins on 1 November.
Businesses that have borrowed money through the government’s loan scheme will also be given more time to repay the money.
And a VAT cut for hospitality and tourism companies will also be extended until March 2021.
Meanwhile, the cut from 20% to 5% VAT – which came into force on 15 July – had been due to expire on 12 January 2020