Coronavirus: PM says 'massive package' of investment planned to support employment after the furlough scheme ends

Tanwen Dawn-Hiscox

Deputy Editor

The UK government is considering a "massive package of investment in jobs and growth" to avoid mass unemployment when the job retention scheme comes to an end in its current form, the Prime Minister has said.

Boris Johnson told the Commons in today's PMQs that while the furlough scheme as it stands will definitively come to an end on November 1st, that the chancellor of the Exchequer, Rishi Sunak, is working on “creative and imaginative measures” to avoid a massive surge in unemployment when it does.

According to the Financial Times, the Chancellor is considering at least two schemes, as well as taking note of what governments are doing in neighbouring European countries. Additionally, several individuals briefed on the issue reportedly said a number of options to subsidise workers wages are being looked at.

One such scheme could be that devised by the Confederation of British Industry (CBI), which proposes that the state cover some of the costs of an employee should their employer be able to offer them (and pay them for) at least 50 percent of their working hours.

For non-working hours, the company would pay a third, the Treasury would foot another third, and the employee would sacrifice the final third.

This would allow the government to support businesses without keeping furloughed employees in so-called "suspended animation," as the chancellor believes an extension of the JRS would, and cost approximately £500 million a month, as compared to the £4bn a month incurred with furlough.

The Trades Union Congress (TUC) proposes a similar scheme, the difference being that employees would receive between 80 and 100 percent of their non-working hour pay.

As the hospitality sector is likely to be one of the hardest hit by the end of the furlough scheme - calls for an extension - or a suitable replacement - are increasingly widespread, especially with tougher restrictions affecting the industry.

In these challenging times…

The Staff Canteen team are taking a different approach to keeping our website independent and delivering content free from commercial influence. Our Editorial team have a critical role to play in informing and supporting our audience in a balanced way. We would never put up a paywall – The Staff Canteen is open to all and we want to keep bringing you the content you want; more from younger chefs, more on mental health, more tips and industry knowledge, more recipes and more videos. We need your support right now, more than ever, to keep The Staff Canteen active. Without your financial contributions this would not be possible.

Over the last 16 years, The Staff Canteen has built what has become the go-to platform for chefs and hospitality professionals. As members and visitors, your daily support has made The Staff Canteen what it is today. Our features and videos from the world’s biggest name chefs are something we are proud of. We have over 560,000 followers across Facebook, X, Instagram, YouTube and other social channels, each connecting with chefs across the world. Our editorial and social media team are creating and delivering engaging content every day, to support you and the whole sector - we want to do more for you.

A single coffee is more than £2, a beer is £4.50 and a large glass of wine can be £6 or more.

Support The Staff Canteen from as little as £1 today. Thank you.