The government has concluded that its job retention scheme has been beneficial but financially impossible to sustain, and has decided to cease giving tax-payer support upon the potential reopening of the economy. Chancellor Rishi Sunak indicated that the government will employ changes to the scheme, as the workforce is eased back into society.
Rishi Sunak echoed Boris Johnson’s sentiments about workers needing to return to work, this comes ahead of Mr Sunak’s concern about the dependence on the furlough scheme and how thinly it is being stretched.
Just last week when Mr Sunak was asked about how much longer can the government be expected to give out this support he likened the scheme to being a temporary life-line, aiding businesses and employees to avoid unnecessary redundancies.
“I’m working as we speak to figure out the most effective way to wind down the scheme and ease people back into work,” said Mr Sunak. Many have voiced their concerns over the removal of the scheme saying that it is too soon and that they may cause more harm to an already critical economic situation.
Last week, it was reported that over 1 million people applied for a universal credit account due to lockdown restrictions, ITV News reported over 6 million people have signed up for the furlough scheme since the coronavirus outbreak having limited freedom and movement, and eventually prohibiting people from going to work.
This dependency on government assistance is due to come to an end, according to a report by Independent, Mr Sunak is not expected to extend the furlough scheme as previously done, but is rather due to end by the 30th of June.