UK's COVID-19 job saving scheme to taper off from August: Rishi Sunak

 UK Chancellor Rishi Sunak has set out UK government's plans to taper off Coronavirus Job Retention Scheme from August as ecomy grually opens up from pandemic lockdown.

Indian-origin finance minister on Friday said furlough, or forced leave, scheme, under which UK taxpayer covered 80 per cent of ws of nearly a million jobs, will begin to wind down with employers asked to contribute a "modest" proportion of those costs from August before it ends in October.

“ furlough scheme cant continue indefinitely. Employers will be asked to contribute, alongside taxpayer, to pay ws of ir staff,” said Sunak, as he highlighted that British government in history h undertaken a scheme at such a scale.

“From July 1, a flexible furlough will be in place. Employers will have maximum flexibility to decide to bring back employees for a number of days per week,” he said.

As part of changes, in June and July, scheme will continue as before – with government covering 80 per cent of ws up to GBP 2,500 – with employer contribution.

In August, taxpayer contribution will stay at 80 per cent, with employers asked to pay National Insurance and Employer Pension Contributions, which are about 5 per cent of employment costs.

By September, employers will be asked to start paying towards people's ws, with taxpayer contribution dropping to 70 per cent of furlough grant and employers covering 10 per cent. By October, taxpayer contribution will fall to 60 per cent and employers will pay 20 per cent before scheme closes at end of month.

“I have aimed to make scheme as flexible and generous as possible. But re will be hardship ahe for many and I will work very hard to get people back into jobs,” he said, when asked about looming unemployment as lockdown is lifted.

minister, who has been at forefront of UK's ecomic response to pandemic, also confirmed that a taxpayer-funded grant for self-employed workers has also been extended for ar three months, with a second payment of up to GBP 6,500 available under Self-Employment Income Scheme. At end of October, all such schemes will be wound down to focus on opening up ecomy.

“t everything will look same as before. We won't be able to put key into lock and step into world as it was in January. But government will do what it can to help people thrive in post-COVID world,” Sunak ded.

minister, who was dressing daily Downing Street briefing, revealed that a furr 324 fatalities over previous day meant that UK coronavirus death toll w stands at 38,161. PTI AK RS RS