Government to pay 80 per cent of wages for employees not working due to coronavirus, Rishi Sunak says
The Government will pay 80 per cent of wages for employees not working because of the coronavirus pandemic, the Chancellor has announced.
At the daily Covid-19 press conference in Downing Street on Friday, Rishi Sunak said the Government would make payments up to £2,500 a month in a scheme with unlimited funding.
It came as Prime Minister Boris Johnson announced that pubs, clubs, restaurants and cafes have been ordered to close from tonight in the battle against Covid-19.
Mr Sunak said: “I have a responsibility to make sure that we protect, as far as possible, people’s jobs and incomes.
“Today I can announce that in the first time of our history, the Government is going to step in and help pay people’s wages."
He continued: “We’re setting up a new coronavirus job retention scheme. Any employer in the country small or large, charitable or non-profit, will be eligible for the scheme.
“Employers will be able to contact HMRC for a grant to cover most of the wages of people who are not working but are furloughed and kept on payroll rather than being laid off.
“Government grants will cover 80% of the salary of retained workers up to a total of £2,500 a month – that’s just above the median income.”
Mr Sunak said the payments would be backdated to March 1.
The Chancellor said his commitments were “unprecedented measures for unprecedented times” as he appealed to members of the public to support each other.
Mr Sunak said: “The actions I’ve taken today represent an unprecedented economic intervention to support the jobs and incomes of the British people.
“Unprecedented measures for unprecedented times.
“Now more than at any time in our history we will be judged by our capacity for compassion. Our ability to come through this won’t just be down to what Government or businesses do but the individual acts of kindness that we show each other.”
The Chancellor also pledged £1 billion of support for renters by increasing housing benefit and Universal Credit.
He said the welfare payments’ “generosity” would be increased to allow the local housing allowance to cover at least 30% of market rents.
Mr Sunak's statement came after Mr Johnson announced drastic new measures to fight the coronavirus pandemic.
He said restaurants, pubs, clubs, bars, leisure centres and nightclubs would be told to close their doors from Friday night.
Mr Johnson said: "Following agreement with all the devolved administrations, we are collectively telling cafes, pubs, bars and restaurants to close tonight as soon as they reasonably can and not to open tomorrow. Though, to be clear, they can continue to provide take out services
“We’re also telling nightclubs, theatres, cinemas, gyms and leisure centres to close on the same timescale.”
The Prime Minister added: “I do accept that what we’re doing is extraordinary – we’re taking away the ancient inalienable right of freeborn people of the United Kingdom to go to the pub. And I can understand how people feel about that.
“But I say to people who do go against the advice that we’re getting, the very clear advice that we’re getting from our medical and scientific experts, you know you’re not only putting your own life, the lives of your family, at risk – you’re endangering the community."
The latest announcements came as:
- The UK death toll hit 177 with 167 confirmed in England
- Tesco announced plans to hire 20,000 new staff to work in its stores for at least the next 12 weeks
- Italy's virus cases hit 47,021 - 5,986 more than Thursday - with 4,032 deaths
- New Look offered 13,000 workers voluntary unpaid leave
- President Trump said interest will be waived temporarily on student loans
- BT gave all customers unlimited broadband to work from home
Wetherspoon said it will comply with the Prime Minister’s announcement and close all its pubs tonight. The pub chain had said earlier this week that it wanted to keep its pubs open.
Nik Antona, chairman of the Campaign for Real Ale, said: “Whilst the pubs industry will be devastated by the decision to force closure, it is exactly the type of decisive leadership that has been called for this week as many pubs hung in limbo.
“Pubs and the wider hospitality industry now have clear instruction that closing their doors is the right thing to do, and the confidence that the Government will support their staff and their business.
“This decision will ensure that they can emerge from this crisis in the best position to rebuild their businesses and continue to offer their vital community service to their customers."