Home News Chancellor to ask employers to pay 20% of workers’ wages – reports

bannerebay

Chancellor to ask employers to pay 20% of workers’ wages – reports

by Ace Damon
Chancellor to ask employers to pay 20% of workers' wages - reports

Chancellor Rishi Sunak is expected to announce the leave scheme, with reports suggesting that employers are expected to pay 20% of workers' wages, as well as national insurance and pension contributions.

It is understood that the government will pay 60% of each salary up to a limit of £ 2,500 per month starting in August, according to The Guardian.

Treasury sources did not deny the reports.

The chancellor will update today on how companies will be asked to contribute to employee salaries, following government concerns about the rising costs of the license scheme and its likely impact on the UK public spending deficit.

Currently, employers can claim up to 80% of workers' wages and are exempt from national insurance and pension contributions.

Some 8.4 million workers benefited from the £ 15 billion scheme, while a separate scheme to support self-employed workers cost nearly £ 7 billion.

The license scheme was launched in March and was expected to last three months.

Environment Secretary George Eustice said that people cannot benefit "indefinitely" and ways must be found to get people back to work safely.

He told Sky News that it had been "a" very generous "scheme to help people in these extraordinary times and ensure that companies' overheads could be covered".

But he warned: "We need to try to start putting pieces of the economy back to work."

Image:
The license scheme can be closed to new participants

While Labor shadow secretary Nick Thomas-Symonds insisted, "The prime minister and the chancellor said they would do whatever was necessary to get through this and that people would not lose out on doing the right thing. They must be kept . "

Last month, Sunak said he would extend the existing scheme until July, but was under pressure from authorities to make employers pay a larger contribution.

He must also end the newcomer leave scheme and prevent employers from switching employees, reports say.

:: Listen to the All Out Politics podcast on Apple Podcasts, Google Podcasts, Spotify, Spreaker

The Labor Party urged the chancellor to protect subsidies for the industries most affected by the pandemic.

Meanwhile, a group of inter-party parliamentarians wrote to the chancellor calling for the extension of the support scheme for self-employed workers last Sunday.

Rishi Sunak explains the license extension

"We have extended the scheme for four months"

The group said that these workers – which include many plumbers, hairdressers and TV workers – will be "out of work and without support" if the scheme is not extended.

Although the leave scheme for permanent workers was extended until October, there were no announcements about the self-employed scheme.

Siobhain McDonagh, the Labor MP who organized the letter, said: "This scheme is a lifeline for millions of prisoners across the country.

"How can it be right that the license scheme continues, but that scheme does not?"

Next week, Monday through Thursday, Dermot Murnaghan will be hosting After the Pandemic: Our New World – a series of special live programs on what our world will be like when the pandemic ends.

We will bring together some of the biggest names in the world of culture, politics, economics, science and technology. And you can also participate.

If you want to be in our virtual audience – from your own home – and ask questions to the experts, send an email afterthepandemic@sky.uk

banneraliexp

Related Articles

Leave a Comment

15 + thirteen =

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More