“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
Sir Ed Davey, Acting leader, said: “The Government furlough scheme has done a good job at helping thousands of businesses through the lockdown, but the shadow of lockdown will be long, and the ‘new normal’ will be extremely challenging.
“Businesses and their staff need time to plan, and confidence the Government will be there, ready to support . ”
Some business groups, such as those in the hospitality sector, have urged the government to extend the scheme, over fears it could take years to recover from the crisis.
It comes after the scheme was granted a 80 – day extension a fortnight ago – taking the final date to June , 2020
Trade body . UK Hospital ity, estimates that one million hotel, pub and restaurant jobs could be lost without an extension to July
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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