Guardian economics correspondent Richard Partington experiences that employers’ teams have been warned that authorities wage subsidies for disabled and susceptible staff may very well be drastically scaled again from August beneath Treasury plans to wind down its Covid-19 furlough scheme.
Charities and social enterprise employers have been informed by the federal government that its plan to carry the coronavirus job retention scheme to an eventual shut this autumn doesn’t presently embrace an exemption for susceptible staff.
Rishi Sunak, the chancellor, introduced final week that the furlough scheme – beneath which the federal government pays 80% of employees wages as much as £2,500 a month – can be extended until October. Nonetheless, state help can be scaled again from August, with employers anticipated to contribute to keep up a wage packet of a minimum of 80% for furloughed staff.
Though a last resolution has but to be taken, the chancellor is believed to favour a common strategy to scaling again the scheme for all employers, with out tailoring it to mirror a gradual return to work for companies and staff.
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Younger and outdated can be hardest hit economically, examine finds
Good morning and welcome to the Guardian’s UK coronavirus dwell weblog.
A examine by the think-tank the Decision Basis has discovered that youthful and older staff are being hardest hit by the squeeze on earnings throughout the coronavirus disaster. A couple of in three 18 to 24-year-olds, and three in 10 staff of their early 60s, are receiving much less pay than they did at the beginning of the 12 months. This compares with lower than 1 / 4 of staff aged 35 to 49.
The report – based mostly on a survey of greater than 6,000 UK adults between Could 6 and 11 – warned that youthful staff threat their pay being scarred for years to come back, whereas older staff could find yourself involuntary retired properly earlier than reaching their state pension age. Maja Gustafsson, a researcher on the Decision Basis, mentioned:
Whereas younger persons are within the eye of the storm, they aren’t the one group who’re experiencing massive revenue shocks.
Britain is experiencing a U-shaped dwelling requirements disaster, with staff of their early 60s additionally badly affected.
That’s the reason the Authorities’s technique to help the restoration ought to mix focused help to assist younger folks into work, with extra common stimulus to spice up demand throughout the financial system and assist households of all ages.
Official figures simply out present that unemployment elevated by 50,000 to 1.35 million within the three months to the tip of March. (Essential to notice that lockdown didn’t begin till 24 March.) Talking on BBC Radio four’s Right this moment programme, Iain Duncan Smith – former Tory chief and former work and pension secretary – mentioned “there was at all times going to be a giant hit to the financial system by locking down the financial system”. He warned that there was a lag impact, so the numbers would worsen.
I’m Frances Perraudin and I’ll be bringing you the newest developments within the pandemic within the UK at this time. You contact me with suggestions and feedback on twitter @fperraudin and on firstname.lastname@example.org.
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