The UK Government will pay 80% of wages for employees not working, up to £2,500 a month, Chancellor Rishi Sunak says

The Chancellor said the Government will pick up “most of” the wages of workers.

He 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.

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“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 that the scheme would cover those involved in the PAYE scheme saying: “our planned economic response will be one of the most comprehensive in the world”.

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He added: “To all those at home, right now anxious about the days ahead, I say you will not face this alone.”

Chancellor Rishi Sunak said the coronavirus business interruption loan scheme will now be interest free for 12 months rather than the six months previously announced.

“And thanks to the enormous efforts of our critical financial services sector those loans will now be available starting from Monday,” he said.

Mr Sunak added: “Any employer in the country, small or large, charitable or non-profit, will be eligible for the scheme.”

The Chancellor made an appeal to bosses to stand by their workers during the coronavirus crisis.

“Let me speak directly to businesses: I know it’s incredibly difficult out there – we in Government are doing everything we can to support you,” he said.

“The Government is doing its best to stand behind you and I’m asking you to do your best to stand behind our workers.”

“Please look very carefully at that support before making any decisions to lay people off,” Mr Sunak continued.

“It’s on all of us.”