The Introduction of the Recovery Plan

On the 9th of October, Chancellor Rishi Sunak has introduced a new recovery plan in reaction to Prime Minister Boris Johnson’s incoming Monday announcement to introduce tighter COVID-19 rules. These would most likely include closures of ‘pubs, bars and restaurants’ in highly- infected areas such as the North extending to Midlands.

Eligibility

The key points are:

For a full lockdown workplace, the government will pay ⅔ of the employee’s wages (max of £2,100/ month)
For an employee with reduced hours on a part-time job support scheme but still working at least ⅓ of original hours

An employer will pay all the new reduced hours
The employer will then pay ⅓ of the unworked hours
The government will also pay ⅓ of unworked hours
⅓ of the unworked hours will be left unpaid

Starts on the 1st of November

Politics Involved

Despite Chancellor Sunak having been adamant for furlough to discontinue after October, this Job Support Scheme seems highly similar and many believe he could have saved a lot of people from the feeling of uncertainty. The shadow Chancellor, Anneliese Dodds also criticised Sunak with ‘Chancellor’s furlough flip flop causing chaos as he prepares to tear up Winter Economy Plan before autumn is out’. Additionally, despite it estimated to cost billions of pounds with a revise on the scheme set in January 2021, Northern Mayors especially are also sceptical that this scheme will be enough to save businesses from closure. In response, Chancellor Sunak has pledged that “the extension of the job support scheme will provide a safety net for businesses across the UK who are required to temporarily close their doors”.

by Ke Thie Kiew

Rishi's Revised Recovery Plan