London Daily

Focus on the big picture.
Friday, Oct 09, 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
UK and Germany Finalize Kensington Treaty to Strengthen Defense and Technology Cooperation
Britain Maintains Diplomatic Mission in East Jerusalem Despite Israeli Closure Deadline
English Councils Push Government to Rethink Proposed Funding Cuts
Scottish Homebuilding Falls to Lowest Level in 11 Years
BBC Chief Matt Brittin Defends Restructuring as Staff Challenge Job Cuts
UK Finance Warns High Energy Costs and Bond Yields Are Complicating Fiscal Outlook
UK Adopts All 44 Recommendations on Regulating AI in Healthcare
Chancellor John Healey Prepares Autumn Budget as Borrowing Costs Strain Public Finances
UK Investigators See Strong Indications of Iranian Link After RAF Fairford Security Operation
Laura Trott Pledges Tighter Controls on Political Activism in UK Classrooms
Welsh Ministers Launch Long-Term Review of North Wales and Anglesey Crossings
Welsh Government Orders 18-Month Study of Road Solutions Around Newport
Reform UK MP Sarah Pochin Faces Scrutiny Over £800,000 Second Home Purchase
British Households Grow More Concerned About Fuel and Energy Prices
NHS Leaders Warn of Rising Winter Pressure on Emergency Departments
Kemi Badenoch Proposes £2.3 Billion Employer National Insurance Cut for Young Workers
Middle East Conflict Could Erase UK Fiscal Headroom, Economists Warn
Manchester City Found Guilty of Multiple Premier League Financial Rule Breaches
UK Security Services Find Strong Indications of Iranian Role in RAF Fairford Incident
Costa Coffee Returns to Operating Profit on Iced Drinks and Menu Changes
Asos Warns Customers After Unauthorized Access to Retail App and Data
Kemi Badenoch Puts Growth and Deregulation at Center of Conservative Conference
Campaigners Warn of Deepening Social Care Crisis for Disabled Adults
Study Finds Rising Early-Onset Cancer Rates Among Adults Under 50 in Britain
UK Coach Operators Warn High Diesel Prices Could Force Route Cuts
FCA Opens Independent Review Into Handling of Epstein-Linked Whistleblower Case
Argentina Vows to Block Falkland Islands Offshore Oil Development
UK Chancellor Prepares Fiscal Measures and Welfare Reforms Ahead of Autumn Budget
Sainsbury’s and Morrisons Explore Potential Multi-Billion-Pound Merger
UK Weighs Tariffs on Chinese Electric Vehicles to Align With European Union
UK Threatens Diplomatic Expulsions Over Planned Closure of East Jerusalem Consulate
UK Energy Price Cap Hits Three-Year High as Middle East Conflict Raises Costs
Seventh Arrest Made in Suspected Terror Plot at RAF Fairford
Systemic Education Collapse Sparks Mass Student Uprisings in France
Green Party Faces Backlash Over Resolution Equating Zionism With Racism
Conservatives Debate Scrapping Environmental Rules for New Homes
Cornwall Insight Warns UK Energy Bills Could Approach £2,000 This Winter
UK Coach Operators Warn of Service Cuts as Diesel Prices Exceed £2
Scottish Parliament Approves £68 Billion Budget With New Tax and Property Measures
FCA Opens Independent Review Into Handling of Epstein Whistleblower
UK Government Drops Plan to Suspend Jury Trials in England and Wales
Bank of England Holds Interest Rate at 3.75% as Markets Watch November
Two Iranian Nationals Charged Over Alleged Plot Targeting Manchester Jewish Community
UK Fiscal Headroom Halves to £11 Billion Ahead of Budget, EY Warns
US Bomber Withdrawal From RAF Fairford Prompts UK Security Review
Sarah Wakfer Appointed Chair of Northern Ireland’s Health and Care Regulator
Scotland Housing Completions Fall to 11-Year Low Amid National Shortage
UK Water Companies Face Tougher Oversight and Unannounced Regulatory Inspections
Middle East Conflict Pushes UK Fuel and Wholesale Energy Prices Higher
Andy Burnham Raises Prospect of Second Brexit Referendum in Review of UK-EU Relations
×