The Government has said they want to “wind down” the furlough scheme on 30th June.
However, the furlough scheme is protecting 1 in 5 workers from redundancy. Ending it too early would be a disaster for millions of families and our economy.
That is why – working with businesses – Liberal Democrats have created a new plan to protect employees, their families and the businesses they work for.
The plan includes:
1. A “Safe to Return to Work Scheme” providing a new wage subsidy for all employees coming off furlough, with:
●50% of salary paid during the first month in work, after furlough.
●40% of salary paid during the second month in work, after furlough.
●30% of salary paid during the third month in work, after furlough.
The current £2,500 cap under the Job Retention Scheme would be reduced in line with these percentages.
The scheme would begin once the lockdown ends.
If a company commits to employing the staff member for at least 6 months, this new 3 month wage subsidy could be paid upfront, to ease cashflow further.