UK should extend part of furlough scheme to end of year – Think tank

According to the Resolution Foundation, an independent British think tank, the UK government should extend a costly job support program until the end of the year, as the workers were hit by the coronavirus pandemic, as cited by Reuters.

Key takeaways

“The scheme should remain open to workers in all sectors until early August - more than a month longer than planned - and that businesses should be able to bring workers back part-time from June.

Moving too quickly could cause a second surge in unemployment while moving too slowly would fail to support the recovery.

From June, employers should be allowed to bring back workers on a part-time basis while still receiving the 80% government subsidy for hours which staff do not work, a request also made by business groups.

It would be better to increase the proportion of the 80% subsidy that employers must cover themselves.”