The Government's Plan to save jobs will likely cost up to £40 billion.
The announced Job Retention Scheme has been a welcome reprieve to many employers and employees as many have been able to avoid redundancies in their midst as they place a percentage of their staff on furlough instead (extended leave).
Initially, the Treasury estimated that approximately 10% of businesses will take up the scheme but more accurate figures from the British Chambers of Commerce suggest now that the take up has been and will be much greater - with around 50% of companies putting their employees in the scheme.
Calculations from the Resolution Foundation think tank suggests that it is likely that at least a third of all private sector employees, between 8 and 11 million people, then at least a third of private sector employees will be furloughed which will cost the Government between £30 - £40 billion over the three months period which is three months the Government's initial estimate.
Whilst the costs to the economy are great, we have no doubt that this Job Retention Scheme is important and helpful to many companies around the United Kingdom who have seen their income and cash-flow heavily impacted by the current shutdown. If you have any question regarding the scheme and how you might be able to best utilise it, please do not hesitate to contact our team who will be happy to assist you further.
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This is not legal advice; it is intended to provide information of general interest about current legal issues.