UK should extend part of furlough scheme to end of year: think tank

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UK should extend part of furlough scheme to end of year: think tank
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Britain's government should extend a costly job support programme until the end of the year for retail and hospitality workers hit hardest by the coronavirus, a think tank said on Tuesday, ahead of an expected government announcement.

LONDON - Britain’s government should extend a costly job support programme until the end of the year for retail and hospitality workers hit hardest by the coronavirus, a think tank said on Tuesday, ahead of an expected government announcement.

Finance minister Rishi Sunak is due later on Tuesday to address the future of the Coronavirus Job Retention Scheme, which currently supports more than 6 million jobs but is scheduled to expire at the end of June. The Resolution Foundation, which called for a similar programme before Sunak launched it in March, said it would prove complex to unwind.

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, the Resolution Foundation said, a request also made by business groups. London’s Evening Standard newspaper reported last week that the government was considering reducing the contribution it pays towards furloughed staff’s wages to 60% from 80%.

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