The government’s emergency scheme to save millions of jobs by paying most of people’s salaries will be extended until the end of October. The Chancellor Rishi Sunak has told the BBC that many jobs have already been saved by the furlough scheme.
But there’s growing concern about the £14 billion a month cost of the scheme so the Chancellor has announced significant changes.
– Until July the government will continue to pay 80% of wages up to £2,500 per month.
– But from August employers will have to share the cost, as their staff return to work. And employers will be able to bring staff back to work part-time, which isn’t allowed at the moment.
Rishi Sunak also spoke of the “heartbreaking” job losses caused by the lockdown. Asked whether the UK is heading for a recession, he acknowledged that the pandemic was going to have a very significant impact on the UK economy.
Huw Edwards presents BBC News at Ten reports from Business Editor Simon Jack, Political Editor Laura Kuenssberg and Economics Editor Faisal Islam.