UK Furlough coronavirus benefits will cease from November 1 and will be replaced by a new scheme which could see the highest earner better off.
UK Furlough scheme is set to end tomorrow however some workers will end up benefitting.
The UK’s furlough scheme has helped in excess of 9 million people since the beginning of the coronavirus pandemic however it will finish on Sunday, November 1, and will not return.
Over the period of the furlough scheme the amount available to needy workers has gradually reduced.
The Coronavirus Job Retention Scheme was launched in the UK on Monday, April 20, and saw a whopping £41.4 billion being paid out to workers and businesses in need according to statistics from the HMRC.
The scheme, which enabled workers to receive at least 80% of their original salary up to £2,500 per month, saw widely well received help the public and businesses who had to close as a result of the coronavirus pandemic.
UK Economist, Jack Kennedy, said: “Furlough has been a lifeline for huge numbers of workers and their employers, and at its peak it was supporting nearly nine million people.”
“Above all it preserved millions of jobs that might otherwise have been lost as large parts of the economy were shuttered by the pandemic.”
“But as the scheme ends, thousands of employers and their staff are facing up to a stark reality – many of these jobs simply won’t be viable without the furlough’s support.”
However, figures show that some workers will actually be better off under the replacement rules although it is those in the higher earning bands that will receive the majority of the benefits.
As the new scheme works on a different metric, high earners will actually receive twice as much cash for only working a smaller amount of days per week.
By only working 20% of contracted hours, the employer would pay 5% and the government would pay 62% up to a total of £1,542 per month, which works out as more than the previous furlough for high paid earners and those that work more hours.
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