UK facing jobs 'crisis' warning as furlough scheme wind-down starts

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UK facing jobs 'crisis' warning as furlough scheme wind-down starts

Companies expecting reopening in England were instructed by Boris Johnson to keep their doors closed on the day the vacation program to prevent job loss ends.

For the first time since the corona virus was blocked, beauty salons, bowling alleys and other leisure facilities should greet customers on Saturday, while small wedding receptions and indoor performances should resume.

However, the prime minister delayed the measures by at least two weeks when employers started paying social security and pension contributions to staff on leave before having to pay their salaries next month.

Labor warns that bosses now have a “hard choice” to fire employees or pay “a heavy financial burden” to keep them in employment, unless the government takes a more flexible approach.

At a press conference in Downing Street, Mr. Johnson said he needed to “press the brake pedal” to relax the restrictions, as the spread of Covid-19 in the community had increased for the first time since May.

He also stopped pilots from gatherings in sports venues and forced the World Snooker Championships in Sheffield and horse racing in Glorious Goodwood in West Sussex to continue without fans this weekend.

Millions of workers are still supported by the vacation program, with much of the night economy also closed and local curfew imposing restrictions on businesses.

The holiday program declines with social security payments before companies contribute 10% of the salaries of employees on leave from September and rise to 20% in October.

Labor shadow business secretary Ed Miliband said ministers will be responsible for thousands of workers who will lose their livelihood if they do not give up the blanket withdrawal and recognize the scale of the “employment crisis”.

“Many companies still have little or no money, but are trying to do the right thing and save their employees’ jobs,” he said.

“They are now faced with the difficult decision to let go of their employees or face a heavy financial burden to keep them going.

“Companies in very different sectors and circumstances should not be treated in this uniform manner, and it is clearly unfair and illogical for those employers who are still locked out and cannot act.”

The Treasury announced that the “unprecedented” program will run for a total of eight months and will support a total of 9.5 million jobs at a cost of £ 31.7 billion.

“We continue to support closed sectors with our targeted support package, which includes tax deferrals and VAT reductions, relief from corporate rates, rent moratoriums and loans. And we will continue to work closely with them in this difficult time, ”said a spokeswoman.

The move to give employers more discretion to return employees to work continues on Saturday, as does the removal of protection recommendations for the most vulnerable in England.

Professor Chris Whitty, the chief medical officer for England, warned the nation of being “probably close to the border or borders” of what can be done to reopen society, which means that compromises may be required planned to reopen all schools next month.

Friday’s news came after local blocking measures were announced in parts of the north-west of England and in areas of West Yorkshire, forbidding people from different households from meeting each other after an increase in virus cases indoors or in gardens.

The new rules also prohibited members of two different households from mixing in pubs, restaurants and other restaurants. However, these shops remain open to visitors who come individually or from the same household.

In other developments

  • The National Statistics Office reported an increase in the number of people who tested positive for coronavirus in England. Mr. Johnson said that the spread of the virus in the community is likely to increase for the first time since May.
  • The decision to postpone plans for indoor performances was described as a “bitter blow to the music industry”.
  • The first Scottish minister, Nicola Sturgeon, advised people not to travel across the border to parts of northern England affected by an increase in coronavirus cases, while returnees should minimize contact with people outside their home for 14 days .
  • Muslim leaders criticized the government for the “shockingly short term” new restrictions in parts of northern England announced by Eid the night before the Islamic festival.
  • Mr. Johnson stepped up precautionary measures by making face coverings such as museums, galleries, cinemas, and places of worship mandatory from August 8.

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