In order to avoid a dramatic increase in job losses across Britain this summer, Rishi Sunak, the chancellor is being entreated to extend the layoff scheme.
Under its furlough programme, the government is now paying wages for nearly a quarter of UK jobs. It is anticipated that the chancellor will announce the gradual wind-down of the scheme, amid rising concern over its cost.
Approximately 6.3 million people are having up to 80 per cent of their salaries paid under the government layoff scheme. The scheme was introduced in mid-April this year and it cost at least £80 billion.
Sunak previously warned that the furlough scheme, due to end in June, was not “sustainable” at its current rate.
The UK government is urging employees across the country to return to work only if it is safe to do so.
On Monday’s Downing Street daily briefing, Prime Minister Boris Johnson said that “a sudden big flood” of people returning to work was not expected, describing the latest measures as “baby steps”.
According to reports, is anticipated that Mr Sunak will tell the House of Commons on Tuesday about the continuation of the programme to September, although the rate of support could be cut to 60 per cent.
As the government is faced with several huge expenses due to the coronavirus pandemic, sustaining the layoff scheme for a longer period might be quite difficult.