How the New Job Support Scheme will work
Workers in companies that are legally forced to close due to coronavirus regulations receive two-thirds (67 percent) of their salary under the Extended Job Support Scheme (JSS).
All of this is paid to the company by the Treasury Department, up to a maximum of £ 2,100 per employee.
Now employers only have to pay social security and pension contributions, but the Treasury Department expects this will only affect a very small number of companies.
Companies can apply for the grant if they have restrictions and employees have been unemployed for at least seven consecutive days.
The program starts on November 1st and runs for six months. The review will take place in January.
Companies that are already closed by law, such as B. Nightclubs are also eligible.
The government's original vacation program, due to end later this month, saw the government pay 80 percent of a worker's wages up to a monthly limit of £ 2,500
The original JSS plan gave companies the right to pay their entire wages for the time they worked and one-third of their wages for the time they were off, with the Treasury Department paying an additional third or 22 percent of the total covered.
To be eligible, employees would have to work at least a third (33 percent) of their regular working hours. In this scenario, an employee would receive 77 percent of their total wage, while the company takes 55 percent. The government contribution would have been capped at £ 697.92 per month.
Typically, when a bar worker makes £ 10 an hour and works 40 hours a week, he takes home £ 400 before tax.
According to Rishi Sunak's original JSS program, they would have to work at least 13 hours a week. For those 13 hours they would be paid £ 308. Of this, the employer pays £ 220 and the Treasury pays £ 80.
Under the new revamped system unveiled today, they would be paid £ 268, all of which will be paid by the Treasury Department while the store is closed.
Rishi Sunak re-enabled public spending today with the introduction of a new "safety net" vacation for workers in pubs, restaurants and other businesses that have had to close due to new coronavirus restrictions.
In a move that will cost the Treasury billions, employees will receive two-thirds of their wages, all of which will be paid for by taxpayers. This is a dramatic expansion of the Job Support Scheme (JSS) due to take effect in early November.
The program is aimed at all companies that are legally forced to close new local lockdown measures that are to be introduced as part of a new traffic light system that is expected to be unveiled next week.
When the Chancellor tore up his winter economic plan, he also confirmed that he will increase cash grants for businesses forced to close their doors and increase payouts to a maximum of £ 3,000 per month, payable every two weeks, up from the previous maximum from £ 1,500 every three weeks.
The promise of new support for jobs comes as the government prepares to unveil its new three-tier strategy for local lockdowns next week.
Parts of the country ranked in the top tier are told that pubs, restaurants and cafes will have to close to slow the spread of the coronavirus.
The prospect of widespread closings in the hotel industry in hotspot areas has led to warnings of massive job losses and urged the Chancellor to press ahead with the new support.
Mr. Sunak told reporters, "I hope this provides security and a safety net for people and businesses in the lead up to a potentially difficult winter."
The Chancellor denied that it was just a renamed vacation program after previously refusing to extend the program, arguing that it was "fundamentally wrong" to keep people in jobs that only exist within the program.
He said, “This is a very different scheme than before. This is not a universal approach, but an extension of the job support program, especially for people in companies who are officially or legally required to close the company. In that sense it is very different.
“I've always said that we will adjust and develop our response as the health situation adjusts and evolves. That's what happened. I think that's pragmatic and right. & # 39;
However, the new spending announced by Mr Sunak will raise further concerns about pressure on public finances as borrowing is already pegged at over £ 300bn this year. The Bureau of National Statistics announced last month that public sector debt continues to surpass £ 2 trillion.
When asked how much the JSS system would cost now, a Treasury Department source said, “The cost of course depends on how things go – in different sectors and regions of the country. However, in most scenarios we are looking at hundreds of millions per month. & # 39;
Mr. Sunak at work in posed pictures released immediately after the announcement this afternoon in which he told reporters, "I hope this provides security and a safety net for people and businesses in the lead up to a potentially difficult winter."
When the Chancellor tore up his winter economic plan, he also confirmed that he will increase cash grants for businesses forced to close their doors and increase payouts to a maximum of £ 3,000 per month, payable every two weeks, up from the previous maximum from £ 1,500 every three weeks
The program is aimed at all companies that are legally forced to close due to new local lockdown measures to be introduced as part of a new traffic light system that is expected to be unveiled next week
How the original job support program was supposed to work, as Rishi Sunak revealed last month …
… and how it will look after today's announcement to help workers in areas closed by new restrictions
The latest data released by the Office of National Statistics suggests that the UK's V-shaped recovery from the coronavirus crisis is slowing
The Bureau of National Statistics announced last month that public sector debt continues to surpass £ 2 trillion
The UK has 13,864 coronavirus cases as a hat-trick of reports says the actual daily number can go as high as 45,000
The UK today recorded another 13,864 coronavirus cases as a hat-trick of depressive studies, which today confirmed the outbreak is increasing and putting more pressure on ministers to act and stop the disease resurgence.
A government-run study estimated that by October 5, 45,000 people would contract the virus – almost half what it was on the darkest days of the crisis in March and April, when scientists believe the real number was at least 100,000 amounted to. It is also noted that cases are increasing twice as fast in the north of the country as they are in the south.
Another report by the Bureau of National Statistics estimated that 17,400 people were diagnosed with the disease every day for the week ending October 1 in England alone. This was twice as much as forecast last week. This is the highest estimate the ONS has given and makes the outbreak bigger than it was in late April when the data began.
And statistics released yesterday by Public Health England show that infection rates have increased in all but three areas of the country since last week. Out of a total of 149 local authorities, only Luton, Wolverhampton and Cornwall and the Isles of Scilly had fewer cases per person than last week.
Today's ONS report, based on data spanning the two weeks ending October 1, warns that the number of infections has risen rapidly in recent weeks. Official tests show that cases continued to rise in the first week of October, which means the estimate for the next week will likely be higher again.
If the estimate is correct, it suggests that the Department of Health's testing program is now capturing most of the real number of cases. On October 1, 11,000 people were diagnosed – 63 percent of the ONS's new cases.
The REACT study carried out by Imperial College London shows that cases are doubling in the northern regions of England at twice the rate in the rest of the nation. The national doubling time is estimated at 29 days, but closer to 13 days in Yorkshire, 14 in the West Midlands and 17 days in the North West. In London, it could even shrink, the researchers added, in part because of the immunity developed in the first wave.
Government ministers this morning admitted the spread of the disease "got out of hand" as Tory MPs warned against imposing local bans on the "Hotel California" that will never end.
Earlier this week, Mr. Sunak warned of tax increases when he delivered his keynote address at the Tory conference. In a bizarre "virtual" speech, fraught with technical problems, in which Mr. Sunak awkwardly reads an Autocue that appeared to be in the wrong place, he warned strongly that "tough decisions" regarding tax increases and spending cuts would be required afterwards The immediate crisis will pass.
He said "in the medium term" the government "needs to get our borrowing and debt back under control" and added, "His conservative government will always balance the books."
The JSS plan, announced last month before the number of coronavirus cases rose dramatically across the UK, originally saw companies pay workers for their hours and a third of their wages for hours worked, while the Treasury Department attracts another third (22 percent), so the employee received two-thirds of their entire paycheck.
Under the new system, they still get two-thirds (67 percent) of their wages, which is capped at £ 2,100 per month, but they are all picked up by the Treasury Department. Employers only have to pay social security and pension contributions.
Dame Carolyn Fairbairn, director general of the CBI, said, “The sharp rise in infections in some areas means that new restrictions on curbing the numbers feel inevitable.
"The Chancellor's more generous support for those severely restricted should cushion the blow to the hardest hit and keep more people in work."
And Mike Cherry, chairman of the Federation of Small Businesses, said: & # 39; & # 39; Further advancing the Job Support Scheme to provide two-thirds of the total wage bill, along with improving existing cash grants for those facing this scenario, are both groundbreaking welcome to see them adopted today. & # 39;
The vacation plans came about when the Bureau of National Statistics announced that the UK economy only grew 2.1 percent in August – much less than expected.
Companies can only receive the grant if they are restricted and employees must be unemployed for at least seven consecutive days.
The program begins November 1st and will be available for six months, with a review point in January.
The government's original vacation program is slated to end later this month. The government paid 80 percent of a worker's wages up to a monthly limit of £ 2,500 and the unions had asked for an extension.
Hospitality closures are expected to take place in much of the north of England, where infection rates are particularly high.
The program is open to food businesses that are still open to take-away and those that serve people outdoors, as well as nightclubs and others
The shadow chancellor Anneliese Dodds said: “The fact that the chancellor has to tear up her winter economic plan before the end of the autumn shows the chaos and incompetence in the heart of the government. His delay in providing support has resulted in unnecessary anxiety and job losses.
& # 39; Even at this late stage, he still has no plan to support sectors that are currently unable to reach their full capacity.
None of this was inevitable if the Chancellor had just taken his fingers out of his ears and listened to warnings from Labor and others.
"Companies and families do not have the luxury of going at Rishi Sunak's pace when millions of jobs and livelihoods are at stake."
Liverpool metro mayor Steve Rotheram is one of several personalities who have urged Mr Sunak to provide the same level of holiday assistance that was available when the national lockdown began.
He told The Times, “If it was right then, it's safe now – so we need to see local vacation programs, corporate grants, and financial support for the self-employed and those unable to work from home.
"Otherwise, the money spent earlier in the year protecting jobs and businesses earlier in the year would have been wasted."
Greater Manchester Mayor Andy Burnham has warned that "the damage to the North's economy will be profound and permanent" if the government does not extend the vacation program.
Responding to news that 465 jobs are due to be lost at Manchester Airport, he tweeted, “The government believes these jobs are 'not viable.' I say they are.
"(Without) an extension of the main vacation schedule, the damage to the North's economy will be profound and permanent."
The UK hospitality group has also asked Mr. Sunak to offer support to businesses in line with previous vacation levels.
Trade association CEO Kate Nicholls called for 80 percent vacation coverage for employees in restricted areas and 66 percent vacation coverage for areas with other trade restrictions.
She said, “We totally support the government's tiered approach to protecting public health. Our sector has invested heavily to ensure that our venues are the best-monitored and COVID-safe public space.
& # 39; The undeniable fact is that any restrictions currently in place or under consideration will make it impossible for most venues to be anywhere near profitable.
"To save jobs and businesses, government support for the hospitality industry needs to be at the level of the vacation program, which has forced closings, and two-thirds of wages, where curfews and other restrictions severely affect trade."
Public sector borrowing has increased sharply this year compared to last year. Tax revenue has fallen and £ 70 billion has been spent tackling the coronavirus crisis, according to IFS
The UK economy grew just 2.1 percent in August as the V-shaped recovery stalled
The UK economy grew only 2.1 percent in August as the recovery from the coronavirus crisis stalled despite Rishi Sunak's Eat Out to Help Out program.
Data released this morning by the Bureau of National Statistics showed the growth rate was much lower than what analysts had expected to be 4.6 percent.
The value of 2.1 percent is also massively below the growth of 6.4 percent in July.
The numbers are likely to fuel fears that a V-shaped economic recovery will recover from the damage caused by the pandemic before further uncertainty emerges in the coming winter months.
The data represents a blow to the Chancellor after his initiative to get more people back to restaurants and pubs by paying half their meals in August was not enough to sustain overall growth seen in July.
Jonathan Athow, ONS deputy national statistician for economic statistics, said: “The economy continued to recover in August, but less than in recent months.
& # 39; There has been strong growth in restaurants and accommodations due to the relaxation of lockdown rules, the Eat Out to Help Out program and the choice of summer stays. However, many other parts of the service sector saw subdued growth.
& # 39; Construction also continued to recover, with a significant boost from residential construction. Manufacturing saw limited growth, which remained at pre-pandemic levels, with auto and aircraft production still much lower than at the start of the year. & # 39;
It came amid reports that Mr Sunak is considering introducing a UK carbon tax to generate billions in revenue for the government and push the country towards a zero net emissions goal.
The UK is currently part of an EU emissions trading scheme but will no longer be a member at the end of the transition period in December.
The Times said Mr Sunak is considering replacing it with a UK tax system, with sources claiming the Chancellor sees it as a way "to increase revenues while reducing emissions".
The original vacation program is expected to cost the government an estimated £ 39 billion, and with each further expansion to local restricted areas, the cost will increase significantly.
Whitehall coffers are already under historical strain as there are signs that the UK's V-shaped recovery from the pandemic is stalling.
The ONS data published today showed that the British economy grew by only 2.1 percent in August despite the Chancellor's “Eat Out to Help Out” program.
Analysts had expected growth of 4.6 percent, and the real figure was a massive drop from the 6.4 percent expansion recorded in July.
The poor state of public finances was illustrated by the Budgetary Responsibility Office last month.
The spending watchdog found that Boris Johnson borrowed more money in five months to tackle the coronavirus crisis than the government had in the entire year following the 2008 financial crash.
In a bleak 10-page analysis, the watchdog underscored how deep the nation was in the red.
Net borrowing surged over £ 173 billion from April to August this year as Mr Sunak funded workers' wages and bailed out businesses.
The staggering figure was a year-over-year increase of £ 146.9 billion and, with more than half of the fiscal year outstanding, has broken the record of £ 157.7 billion a year set during the height of the 2009-10 financial crisis Gordon Brown was established The government is grappling with a global recession.
The Bureau of National Statistics, released last month, showed the UK public sector continues to surpass £ 2 trillion.
The Fierce Battle Between Team Health and Team Wealth: ANDREW PIERCE has the inside story about the rift between Rishi Sunak and Matt Hancock
He is one of the most powerful and popular figures in the government, but Chancellor Rishi Sunak has chosen not to attend the cabinet subcommittee meeting to discuss a revision of local lockdown rules on Monday afternoon.
Instead, he sent a junior minister, John Glen, to reiterate his vehement objections to the “traffic light” system of restrictions proposed for 13 million people in the north of England.
Rather than introducing even more complicated curbs, Sunak believes the government should be on a clear path back to "normalcy" to prevent further destruction of the economy.
The argument went back and forth for an hour, with Cabinet Minister Michael Gove presiding over the virtual trial from his office. When the meeting ended, Glen told his boss that "there had been a good and lively discussion," but no decision had been made.
Chancellor Rishi Sunak (pictured) has decided not to attend the cabinet subcommittee meeting to discuss a revision of local lockdown rules on Monday afternoon
Westminster sources point a finger at Health Secretary Matt Hancock (pictured), who has done a lot since the pandemic began to put the nation's health before economic prosperity
So it came as a surprise to the Treasury Department on Tuesday morning to see headlines and hear news of the government trumpeting that the government was pushing its traffic light system despite the objections of some senior ministers.
The Chancellor was furious. "If a decision was made at this meeting, it would be fair to assume that Rishi would have gone in person," said a senior Tory MP.
Leaked documents suggest the Prime Minister is ready to introduce a new three-tier system of lockdown measures
So what went wrong?
Westminster sources point the finger at Health Secretary Matt Hancock, who has done much since the pandemic began to put the nation's health above economic prosperity.
Had he informed journalists that the traffic light system was a fait accompli and was outmaneuvering the Chancellor?
Whatever the truth, the rift between Sunak and Hancock is increasingly being felt throughout the cabinet. Economic Secretary Alok Sharma and International Trade Minister Liz Truss are just two of those who line up behind the Chancellor.
The role of Michael Gove, a free market Brexiteer, is the subject of much speculation in Westminster as well. Before Boris Johnson was hospitalized in April, it was widely reported that Gove appeared next to the Chancellor as a "falcon" and called for a speedy exit from lockdown.
But like the Prime Minister himself, it is reported that he has changed his mind and is now – along with Hancock – in the pigeon corner arguing for localized lockdowns. A source close to Gove suggests it is a little more nuanced.
"He sees his task in trying to achieve a cabinet consensus on the position of prime minister."
As for the Sunak versus Hancock scenario?
"It is not uncommon for different state secretaries to argue for their sectors," another high-ranking source said. Perhaps.
The UK economy grew only 2.1 percent in August as the recovery from the coronavirus crisis stalled despite Rishi Sunak's Eat Out to Help Out program
However, there is suspicion that the Treasury Department took revenge yesterday with reports that the Chancellor called for clearer guidelines and more transparency in decision-making before the lockdown was triggered.
It is well known that Sunak has serious reservations about plans to close pubs and restaurants in northern England next week – a policy advocated by Hancock.
Of course, 40-year-old Rishi Sunak has an eye on the voters in the so-called "Red Wall" in the former Labor heartland of the North and Midlands, who won the 2019 election.
He has the most prominent seat in the north – Richmond in Yorkshire – of all cabinet ministers and positions himself as their champion and future party leader.
At 42, Matt Hancock is no less ambitious. He ran for the Tory leadership last summer but quit after the first round after gaining a modest 20 votes.
At the moment, however, Sunak has a clear advantage. In successive polls, he emerged as the most trustworthy minister.
He got an 82 percent approval rating on the Conservative Home website this week – around 12 percent ahead of his closest rival. Hancock was minus 3 percent.
"Don't underestimate the rivalry between these two," a senior source said last night.
“Everything is going terribly wrong for Hancock, who can appear irritable and nervous. Test and Trace is a mess, and the lockdown he advocated doesn't seem to be working.
"Rishi ist ein vollendeter Commons-Darsteller, und als er davon sprach, mit dem Virus zu leben und es nicht zu fürchten", stieg sein Bestand noch weiter an. Aber es ist einfach, beliebt zu sein, wenn Sie Geld verschenken. Der eigentliche Test für Rishi wird kommen, wenn das Urlaubsprogramm endet und die Arbeitslosigkeit stark ansteigt. & # 39;
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(tagsToTranslate) Dailymail (t) Nachrichten (t) Coronavirus (t) Rishi Sunak