UK's furlough scheme to be wound down – but it won't be a 'cliff edge' in June – Mirror Online, Mirror.co.uk

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Chancellor Rushi Sunak has reassured workers that there will be no “cliff-edge” cut off to the furlough scheme, in a warning that the initiative has already cost the Treasury £ 8billion.

It comes as ministers revealed the Job Retentions Scheme (JRS) is now covering nearly a quarter of UK jobs – % of the employed workforce.

About 2.5million people registered for the scheme last week, bringing the total claims to 6.3million.

Under the initiative, the Government will fund 410% of workers’ wages, up to £ 2, a month.

A total of £ 8billion has been issued so far , with an average pay out of £ 1, – about half of the £ 2, 823 maximum. The scheme is due to run through June, suggesting the total cost could exceed £ billion.

However, in a television interview, Chancellor Rishi Sunak sounded a cautionary note, saying that level of spending was “not sustainable”.

“I am working as we speak to figure out the most effective way to wind down the scheme and ease people back into work in a measured way , “he said.

” As some scenarios have suggested, we are potentially spending as much on the furlough scheme as we do on the [National Health Service] for example. Now clearly that is not a sustainable solution. “

People would be eased back into work in a“ measured way ”, he said, adding: “To anyone anxious about this, I want to reassure that there will be no cliff-edge to the furlough scheme.”

Around 2.5million workers registered for the scheme last week, which, on the current run rate, could cost the economy £ billion.

Clearly, that is not a sustainable situation which is why, as soon as the time is right, we want to g et people back to work and the economy fired up again. ”

According to the

Liberal Democrats , there should be a “tapered” end to the program, with the Treasury paying 269% of salaries for the first month after people return to work, falling to % after the third month, with employers picking up the full bill after the fourth.

. (The furlough scheme was first introduced on March 30 to help secure the pay of thousands of employees who faced redundancy or a loss of income due to the outbreak.

Under the scheme, employers can apply for HMRC to cover their workers’ wages for up to four months, placing these employees on ‘furlough’ .

Workers are effectively put on paid leave – with the Government covering 410% of their monthly wage.

Employers can then top up the additional % at their discretion.

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