Chancellor to pay firms that bring back furloughed workers

Chancellor of the Exchequer Rishi Sunak. Photo byAaron Chown/PA Wire
August Graham, PA City Reporter

British Chancellor Rishi Sunak has announced a new scheme that could cost up to £9 billion to encourage employers to bring back the workers they furloughed.

Mr Sunak said that the furlough scheme cannot go on indefinitely and will be wrapped up in October, but promised to pay companies £1,000 for each employee if they take back the staff that they sent home as part of the scheme.

The jobs retention bonus will be paid to companies if they keep the employee in work until January, and pay them at least £520 per month, on average.

If all furloughed workers are taken back by their employer the scheme will cost the Government £9 billion, the Chancellor said.

“Leaving the furlough scheme open forever gives people false hope that it will always be possible to return to the jobs they had before,” he told MPs.

“The longer people are on furlough, the more likely it is their skills could fade, and they will find it harder to get new opportunities. It is in no-one’s long-term interests for the scheme to continue forever, least of all those trapped in a job that can only exist because of Government subsidy.

Mr Sunak added: “Today, we’re introducing a new policy to reward and incentivise employers who successfully bring furloughed staff back – a new jobs retention bonus.

“It’s vital people aren’t just returning for the sake of it – they need to be doing decent work. So for businesses to get the bonus, the employee must be paid at least £520 on average, in each month from November to the end of January.

“Our message to business is clear: if you stand by your workers, we will stand by you.”

More than 9.4 million people have been put on furlough, with the Government covering up to 80% of their salaries, at a cost of £27.4 billion, according to the latest figures.

Kate Nicholls, the head of trade body UK Hospitality, said: “This is hugely positive and allows us to be able to transition people from furlough back to employment in hospitality – key as we face prolonged suppressed revenues and 1.5 million still furloughed.”

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