You are here: Home - Household Bills - News -

Furlough pay ‘could be cut to 60% of workers’ wages’

Written by:
The government is preparing to wind-down the coronavirus wage-subsidy scheme which could mean cutting furlough pay from 80% to 60% of wages.

Chancellor Rishi Sunak is reportedly drawing up plans to phase out the coronavirus furlough scheme and encourage people back to work.

One idea is to cut the 80% wage grant for furloughed workers to 60%, with further gradual reductions, according to reports in The Evening Standard.

Another option being considered is to allow some furloughed staff to work but with a smaller subsidy from the taxpayer.

Speaking on ITV News, Sunak said the spending on the furlough scheme is similar to that of the NHS: “Clearly that is not a sustainable situation which is why, as soon as the time is right, we want to get people back to work and the economy fired up again.”

It comes as figures published this week reveal around a quarter of British employees (six million) have been furloughed in the past two weeks at a cost of £8bn.

With the Coronavirus Job Retention Scheme which pays 80% of a workers’ salary up to £2,500 a month available until the end of June, many are questioning its sustainability.

However, Sunak said there will be no “cliff edge” ending amid fears it would trigger mass redundancies.

The nation is expecting Prime Minister Boris Johnson to announce on Sunday the government’s plan to ease Britain out of lockdown as figures suggest we are now past the peak of coronavirus deaths.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week