London Daily

Focus on the big picture.
Friday, Jul 31, 2026

UK govt unveils new job support scheme, but warns it ‘cannot save every business’

UK govt unveils new job support scheme, but warns it ‘cannot save every business’

Britain’s Finance Minister Rishi Sunak has announced a new jobs support program to help firms employ people on shorter hours amid the coronavirus pandemic, with the current furlough scheme ending this month.

“The government will directly support the wages of people in work,” Sunak told Parliament on Thursday. It would give businesses “who face depressed demand the option of keeping employees in a job on shorter hours, rather than making them redundant,” the chancellor said.

The new Jobs Support Scheme, a part of the ‘Winter Economy Plan’, will run for six months starting in November, and will be open to all small- and medium-sized enterprises. Larger firms will only be included if their turnover has fallen during the crisis.

“It will support viable jobs to make sure that employees must work at least a third of their normal hours and be paid for that work as normal by their employer,” Sunak said. Together with employers, the government “will then increase those people’s wages, covering two-thirds of the pay they have lost by reducing their working hours,” he added.


The current furlough scheme, dubbed the Coronavirus Job Retention Scheme (CJRS), will be stopped at the end of next month. It supported around nine million jobs at its peak in May.

Britain’s statistics agency estimated on Thursday that one in eight workers were being helped by the program in early September. The CJRS paid employers 80 percent of the salaries of furloughed workers, up to £2,500 a month.

Sunak admitted he “cannot save every business and job” affected by the pandemic, leaving an opening for criticism from his opponents, who have already claimed the scheme will not prevent many furloughed workers from losing their jobs.

This is a [very] big change from furlough. Less generous. Only open to those who are working a third of normal hours,” Paul Johnson, the head of the Institute for Fiscal Studies (IFS) think-tank, tweeted on Thursday. “Understandable given need to adapt as economy changes… But a lot on furlough now likely to lose their job.”

Prime Minster Boris Johnson, however, said his government was doing its utmost to protect jobs and described the new economic measures as “creative and imaginative.” Speaking of the finance minister’s plan, Johnson said: “That’s the balance in this package, it’s about working together to drive down the virus now, but also keep education and the economy going.”

Newsletter

Related Articles

0:00
0:00
Close
Andy Burnham has Announces Plans to Redistribute Income Tax Revenue to English Mayors
Early-Release Scheme Faces Fresh Scrutiny as Reoffending and Prison Recalls Rise
Police Phone Checks Followed Report on Murder of MI5 Agent Inside Sinn Féin
Archbishop of Canterbury Reaffirms £100 Million Reparative Justice Fund During Ghana Visit
Charities Allege French Police Used Tear Gas Against Channel Migrants
Norwegian Teenager Convicted Over Iran-Linked Murder Plot in Britain
Christian Organisations File Charity Complaints Against Amnesty International UK
Ofgem Tightens Grid Connection Rules for New Data Centres
FTSE 100 Reaches Record High Despite Global Technology Sell-Off
Millions of UK Households Urged to Check Eligibility for Winter Energy Discount
Labour Restores Parliamentary Whips to Diane Abbott and Joani Reid
UK Supreme Court to Hear Challenge Over Palestine Action Ban
UK Commits More Than £8.4 Billion to Dreadnought Nuclear Submarine Programme
England Declares Severe Drought as Wildfire Burns Near Sizewell Nuclear Site
Bank of England Holds Interest Rates at 3.75% as Middle East Tensions Fuel Inflation Risks
Drought Status Extended Across All of Wales as Heat and Dry Weather Deepen Environmental Strain
Record-Low Danube Exposes Probable Mammoth Remains in Bulgaria
UK Business Confidence Climbs to Four-Month High
Greater Manchester Gains Expanded Powers Under Regional Funding Reforms
UK Supreme Court to Hear Appeal Over Palestine Action Terror Ban
Shell's Quarterly Profit Doubles to Nearly $10 Billion on Higher Energy Prices
UK Government Removes VAT From Household Electricity Bills
Exceptional Drought Grips Half of England as Wildfire Threatens Sizewell
Bank of England Holds Interest Rates at 3.75% as Inflation Risks Persist
US Says It Has Carried Out Heavy Strikes on Iran After Attempted Attacks on Its Forces
The chief executive of the popular gaming company laid off many employees and his pay rose to 38 million dollars
UK Employment Holds Steady as Wage Growth Remains Moderate
England to Introduce Artificial Intelligence into Secondary School Curriculum
Wales Launches £1.2 Billion Industrial Regeneration Programme
High Court Upholds UK Digital Surveillance Framework
Northern Ireland Reaches Budget Agreement on Infrastructure and Public Sector Pay
Home Office Expands Digital Border Checks Nationwide
UK Approves Major North Sea Wind and Carbon Capture Project
The World's Most Terrifying Smartphone: Recording, Documenting, and Reporting to the Regime
Scotland Approves Major Renewable Energy Expansion
UK and United States Sign AI and Semiconductor Cooperation Pact
UK Treasury Tightens Fiscal Controls After Gilt Market Volatility
Bank of England Holds Interest Rates at 4.5%
UK Unveils £10 Billion NHS Funding Overhaul and Workforce Reform
The AI User Nightmare: Private Claude Conversations Leaked to the Internet
UK: Former Football Association Leaders Call for World Cup Boycott Over FIFA Privatization Plan
Forbidden Love: China severs millions from their virtual partners
Over 24 Hours in the Air: Qantas Airbus Completes Record-Breaking Test Flight
Prince Harry Faces Significant Legal Costs After Insurance Shortfall
FirstGroup Sells Rail Software Business to Tracsis for £48 Million
Victoria and Albert Museum Staff Vote for Strike Action
Norwegian Teenager Convicted Over Contract Killing Plot in Britain
Royal Mail Raises Bulk Mailing Prices by 30%
Immigration Remains Britain's Top Public Concern, Ipsos Survey Finds
Prime Minister Says Social Care Reform Must Precede Assisted Dying Legislation
×