Sunak to set out changes to JRS this week

By Georgia Cronin

- Last updated on GMT

Sunak to set out changes to Coronavirus Job Retention Scheme this week

Related tags: Coronavirus, Job Retention Scheme

The Chancellor, Rishi Sunak, is to announce more details regarding the phasing out of the Government's Coronavirus Jobs Retention Scheme (JRS) later this week.

As part of the process, he is expected to reveal new measures to stop companies from furloughing additional employees who are currently working full-time, so that they can then bring them back on a part-time basis.

According to the Financial Times​, the Treasury is also looking to set a cut-off date after which no-one will be able to join the scheme.

It has been suggested that Sunak may also reveal the level of employer contributions the Government will expect from August.

According to reports, the draft plans being worked on are expected to require an employer contribution of 20% from 1 August, with the Government paying the remaining 60% of the furloughed employee’s salary.

Earlier this month the Chancellor announced that the JRS would be extended​ in its current form until the end of July; and then continue in August, September and October with "greater flexibility”.

Yesterday it was reported that MCA Insight/HIM’s latest Hospitality Leaders Poll revealed that in the hospitality industry, 41% of operators say they won’t be able to contribute a penny to the JRS unless they are operating at full capacity by then​.

“Our ability to top up Furlough is based on our income,” said one multi-site operator. “We won’t be able to start paying 20% of the salaries of people furloughed unless there’s enough income to pay the bills. In this scenario, we will look at the redundancy routes for excess numbers, and recruit as we ramp up when we do need the numbers.

“We will be able to afford to top up salaries and operate at a more robust level if something like the National Time Out campaign is successful as our rents in London are the number one fixed cost and therefore the fundamental issue with not being able to trade as before.”

Related topics: Business

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