The United Kingdom government has said that wages of employees who are unable to work because of the coronavirus pandemic will be paid by it which is seen a very radical measure to secure the hobs of such employees.
The government said that it will pay about 80 per cent of the salaries of the employees who are retained by the employer and the maximum amount of wages covered under this scheme will be up to £2,500 a month.
The "unprecedented" measures will help to prevent employees being laid off because opf the pandemic crisis, chancellor Rishi Sunak said.
As the UK government imposed a lockdown in vast parts of the country, companies and small firms have warned that they could face collapse because of the coronavirus pandemic resulting in loss of thousands of jobs.
There would be a "significant impact" on businesses by the closure of pubs and restaurants, Sunak said.
According to reports, the program for subsidizing the wage will be applicable for those companies that have already been forced to lay off employees because of the coronavirus pandemic provided that the layed-off employees are re-hired by the companies and are given a leave of absence for the period that they were not able to work.
Such a measure will help the workers to retain their jobs even if salaries are not paid by the employer, the chancellor said. He said they were "unprecedented measures for unprecedented times."
"I know that people are worried about losing their jobs, about not being able to pay the rent or mortgage, about not having enough set by for food and bills... to all those at home right now, anxious about the days ahead, I say this: you will not face this alone," Sunak added
Sunak said that the subsidies for wages will be calculated since the start of March and will relate to gross pay only. He however said that the scheme could be extended "if necessary".
A Treasury spokeswoman said that the salary subsidy program will be implemented by the HMRC and it is expected that the first grants to business under this scheme will be given "within weeks".
Sunak's announcement was described as "a landmark package" by the employers' body the CBI. "It marks the start of the UK's economic fightback - an unparalleled joint effort by enterprise and government to help our country emerge from this crisis with the minimum possible damage," said director general Carolyn Fairbairn.
The package was "hugely welcome" and it would help the lower-paid workers who are at the worst risk of loosing their jobs, said the Resolution Foundation think tank.
However, the risks to those companies that had to wait for the money to reach them was highlighted by other lobby groups.
Many businesses faced rent payments before the support was due, said Kate Nicholls, the chief executive of trade body UK Hospitality. "Banks and landlords need to do more to help us bridge the gap towards this generous government support. Damage is being done now, so we need help now."
(Source:www.bbc.com)
The government said that it will pay about 80 per cent of the salaries of the employees who are retained by the employer and the maximum amount of wages covered under this scheme will be up to £2,500 a month.
The "unprecedented" measures will help to prevent employees being laid off because opf the pandemic crisis, chancellor Rishi Sunak said.
As the UK government imposed a lockdown in vast parts of the country, companies and small firms have warned that they could face collapse because of the coronavirus pandemic resulting in loss of thousands of jobs.
There would be a "significant impact" on businesses by the closure of pubs and restaurants, Sunak said.
According to reports, the program for subsidizing the wage will be applicable for those companies that have already been forced to lay off employees because of the coronavirus pandemic provided that the layed-off employees are re-hired by the companies and are given a leave of absence for the period that they were not able to work.
Such a measure will help the workers to retain their jobs even if salaries are not paid by the employer, the chancellor said. He said they were "unprecedented measures for unprecedented times."
"I know that people are worried about losing their jobs, about not being able to pay the rent or mortgage, about not having enough set by for food and bills... to all those at home right now, anxious about the days ahead, I say this: you will not face this alone," Sunak added
Sunak said that the subsidies for wages will be calculated since the start of March and will relate to gross pay only. He however said that the scheme could be extended "if necessary".
A Treasury spokeswoman said that the salary subsidy program will be implemented by the HMRC and it is expected that the first grants to business under this scheme will be given "within weeks".
Sunak's announcement was described as "a landmark package" by the employers' body the CBI. "It marks the start of the UK's economic fightback - an unparalleled joint effort by enterprise and government to help our country emerge from this crisis with the minimum possible damage," said director general Carolyn Fairbairn.
The package was "hugely welcome" and it would help the lower-paid workers who are at the worst risk of loosing their jobs, said the Resolution Foundation think tank.
However, the risks to those companies that had to wait for the money to reach them was highlighted by other lobby groups.
Many businesses faced rent payments before the support was due, said Kate Nicholls, the chief executive of trade body UK Hospitality. "Banks and landlords need to do more to help us bridge the gap towards this generous government support. Damage is being done now, so we need help now."
(Source:www.bbc.com)