Worcester MP Robin Walker has welcomed the Chancellors announcement that workers across the United Kingdom will benefit from increased support with a five-month extension of the furlough scheme into Spring 2021.

The Coronavirus Job Retention Scheme (CJRS) will now run until the end of March with employees receiving 80% of their current salary for hours not worked.

Similarly, support for millions more workers through the Self-Employment Income Support Scheme (SEISS) will be increased, with the third grant covering November to January calculated at 80% of average trading profits, up to a maximum of £7,500.

The furlough scheme was initially extended until 2 December. But the government is now going further so that support can be put in place for long enough to help businesses recover and get back on their feet – as well as giving them the certainty they need in coming months. Evidence from the first lockdown showed that the economic effects are much longer lasting for businesses than the duration of restrictions.

Throughout the pandemic, the government has acted with speed to protect lives and safeguard jobs with an unprecedented £200 billion support package. The furlough scheme has protected over nine million jobs across the UK, and self-employed people have already received over £13 billion in support. This is in addition to billions of pounds in tax deferrals and grants for businesses.

The Chancellor of the Exchequer Rishi Sunak said:

“I’ve always said I would do whatever it takes to protect jobs and livelihoods across the UK – and that has meant adapting our support as the path of the virus has changed.”

“It’s clear the economic effects are much longer lasting for businesses than the duration of any restrictions, which is why we have decided to go further with our support.”

“Extending furlough and increasing our support for the self-employed will protect millions of jobs and give people and businesses the certainty they need over what will be a difficult winter.”

Speaking after the economic support measures were announced, Robin said:

“It will come as a great relief to many in the hospitality sector and help save many jobs, but I hope that most businesses will be able to return well before March.”

“It will come as a great relief to many in the hospitality sector and help save many jobs, but I hope that most businesses will be able to return well before March.”

ENDS

Notes to editors

For Robin’s previous statements on Coronavirus economic support, please see:

https://www.walker4worcester.com/2020/11/worcester-mp-supports-key-measures-to-extend-help-to-business-and-control-spread-of-the-virus/

https://www.walker4worcester.com/2020/10/244000-of-vital-funding-from-culture-recovery-fund-awarded-to-worcester-live/

https://www.walker4worcester.com/2020/10/443729-in-funding-to-support-arts-and-culture-in-worcester/

https://www.walker4worcester.com/2020/09/towns-funding-to-kick-start-local-projects-driving-growth-and-improving-environment/

https://www.walker4worcester.com/2020/09/winter-economic-plan-to-provide-a-boost-for-businesses-in-worcester/

https://www.walker4worcester.com/2020/08/walker-welcomes-eat-out-to-help-out-scheme-in-worcester/

https://www.walker4worcester.com/2020/07/chancellor-announces-a-plan-for-jobs-to-support-jobs-and-help-boost-uk-economy/

https://www.walker4worcester.com/2020/04/walker-welcomes-strengthening-support-on-offer-for-business-as-first-government-backed-loans-reach-firms-in-need/

 

  • In addition, the Jobs Retention Bonus (JRB) will not be paid in February and the government will redeploy a retention incentive at the appropriate time. The purpose of the JRB was to encourage employers to keep people in work until the end of January. However, as the CJRS is being extended to the end of March 2021, the policy intent of the JRB falls away.