Skip to main content

Rishi’s grants for furloughed employees won’t save jobs, warn bosses 

NewsColony
Rishi’s grants for furloughed employees won’t save jobs, warn bosses 

Business leaders have warned that the Chancellor’s job retention bonuses will not stop them from laying off staff.

Rishi Sunak is offering employers a £1,000 grant for every furloughed employee they keep on when the job retention scheme winds down at the end of October.

But fewer than one in five business leaders who have furloughed staff say these payouts will actually help them keep hold of their workers, according to a poll carried out by the Institute of Directors.

Rishi bonus: Chancellor Rishi Sunak is offering employers a £1,000 grant for every furloughed employee they keep on when the job retention scheme winds down at the end of October

Rishi bonus: Chancellor Rishi Sunak is offering employers a £1,000 grant for every furloughed employee they keep on when the job retention scheme winds down at the end of October

Rishi bonus: Chancellor Rishi Sunak is offering employers a £1,000 grant for every furloughed employee they keep on when the job retention scheme winds down at the end of October

And just 3 per cent said they will have a ‘substantial effect’ on their ability to retain workers.

With the Treasury considering plans to raise corporation tax from 19 per cent to 24 per cent to help pay for the Covid crisis, the IoD described the job retention bonus as a ‘sticking plaster’ and urged Sunak to cut taxes including employer’s national insurance contributions to prevent a ‘surge in unemployment’.

An audit by the Mail has revealed that top British firms have already announced plans to lay off more than a quarter of a million workers since the Covid crisis began.

But the threat of more lay-offs increases from today when employers will be forced to contribute to the wages of furloughed staff for the first time.

The Government will reduce its contribution to 70 per cent of wages up to £2,500 per month, down from 80 per cent.

Firms will have to top up salaries to 80 per cent, and continue to pay national insurance contributions and pension contributions. 

Just over half the 730 business directors who took part in the IoD’s poll said they were confident about being able to start contributing to the wages of furloughed staff. 

But 28 per cent said that they were pessimistic about being able to meet these additional costs.

Tej Parikh, chief economist at the IoD, said: ‘As the furlough scheme winds down, job losses are starting to mount. 

‘The job retention bonus is just a sticking plaster, and is unlikely to give many businesses the support needed to retain staff.’

The IoD’s hard-hitting intervention came as accountancy giant KPMG warned that the UK economy is unlikely to recover until early 2023 as it slashed its growth forecasts.

It now expects the economy to shrink by 10.3 per cent this year, compared with the 7.2 per cent fall it predicted in June.

#fiveDealsWidget .dealItemTitle#mobile {display:none} #fiveDealsWidget {display:block; float:left; clear:both; max-width:636px; margin:0; padding:0; line-height:120%; font-size:12px} #fiveDealsWidget div, #fiveDealsWidget a {margin:0; padding:0; line-height:120%; text-decoration: none; font-family:Arial, Helvetica ,sans-serif} #fiveDealsWidget .widgetTitleBox {display:block; float:left; width:100%; background-color:#af1e1e; } #fiveDealsWidget .widgetTitle {color:#fff; text-transform: uppercase; font-size:18px; font-weight:bold; margin:6px 10px 4px 10px; } #fiveDealsWidget a.dealItem {float:left; display:block; width:124px; margin-right:4px; margin-top:5px; background-color: #e3e3e3; min-height:200px;} #fiveDealsWidget a.dealItem#last {margin-right:0} #fiveDealsWidget .dealItemTitle {display:block; margin:10px 5px; color:#000; font-weight:bold} #fiveDealsWidget .dealItemImage, #fiveDealsWidget .dealItemImage img {float:left; display:block; margin:0; padding:0} #fiveDealsWidget .dealItemImage {border:1px solid #ccc} #fiveDealsWidget .dealItemImage img {width:100%; height:auto} #fiveDealsWidget .dealItemdesc {float:left; display:block; color:#004db3; font-weight:bold; margin:5px;} #fiveDealsWidget .dealItemRate {float:left; display:block; color:#000; margin:5px} #fiveDealsWidget .footerText a:hover{text-decoration: underline;} #fiveDealsWidget .footerSmall{font-size:10px; padding-top:10px;} @media (max-width: 635px) { #fiveDealsWidget a.dealItem {width:19%; margin-right:1%} #fiveDealsWidget a.dealItem#last {width:20%} } @media (max-width: 560px) { #fiveDealsWidget #desktop {display:none;} #fiveDealsWidget #mobile {display:block!important} #fiveDealsWidget a.dealItem {background-color: #fff; height:auto; min-height:auto} #fiveDealsWidget a.dealItem {border-bottom:1px solid #ececec; margin-bottom:5px; padding-bottom:10px} #fiveDealsWidget a.dealItem#last {border-bottom:0px solid #ececec; margin-bottom:5px; padding-bottom:0px} #fiveDealsWidget a.dealItem, #fiveDealsWidget a.dealItem#last {width:100%} #fiveDealsWidget .dealItemContent, #fiveDealsWidget .dealItemImage {float:left; display:inline-block} #fiveDealsWidget .dealItemImage {width:35%; margin-right:1%} #fiveDealsWidget .dealItemContent {width:63%} #fiveDealsWidget .dealItemTitle {margin: 0px 5px 5px; font-size:16px} #fiveDealsWidget .dealItemContent .dealItemdesc, #fiveDealsWidget .dealItemContent .dealItemRate {clear:both} }

Source: Daily Mail

The post Rishi’s grants for furloughed employees won’t save jobs, warn bosses  appeared first on NewsColony.
NewsColony



source https://newscolony.com/rishis-grants-for-furloughed-employees-wont-save-jobs-warn-bosses/

Comments

Popular posts from this blog

Volunteers book hotel room for homeless man with SingapoRediscovers vouchers

NewsColony Volunteers book hotel room for homeless man with SingapoRediscovers vouchers © The Independent Singapore Singapore — A group of volunteers from the Mummy Yummy Singapore welfare organisation donated their SingapoRediscovers Vouchers to book a hotel room for a homeless man. The man, who was identified as Jayden, did not have a place to live while waiting for the Housing Board (HDB) to allocate him a rental flat. In a Facebook post on Mummy Yummy Singapore’s page on Wednesday (Dec 16), the volunteers said: “We used our $100 Rediscover Singapore vouchers to redeem hotel stay for him and successfully booked 9 days worth of stay at 3 days per voucher.” They added that they were unable to book a longer stay because of higher hotel rates over Christmas and New Year. The volunteers hoped that they would be able to bridge Jayden’s stay until he got a flat. “Thanks our government for giving us these vouchers which in return we can put them to good use for people in need,” th...

Chinese stars moonlighting as live-streamers

NewsColony Chinese stars moonlighting as live-streamers Li JIaqi and Yang Mi joined forces to sell products online during coronavirus, blurring the boundaries between conventional celebrities and live streamers. Photo: @TrendingWeibo/Twitter The line between Chinese celebrities and live streamers continues to blur these days. Luxury brands are expanding their pool of friend-of-the-brand endorsements with top live streamers – Louis Vuitton, for example, tapped both actress Song Jia and “lipstick king” live streamer Li Jiaqi for its much anticipated 520 Chinese Valentine’s Day campaign. Celebrities, actors and singers are jumping on the bandwagon to test out their commercial values on e-commerce platforms, with Yang Mi, Li Xiaolu and Michelle Ye Xuan just a few of the screen stars moonlighting on live streaming portals including Taobao, TikTok and Red Book. So why are Chinese celebrities so eager to embrace the battlefield of live streaming e-commerce, and how are they getting on so...

Players who breached social-distancing rules put NRL restart at risk, Federal Sport Minister says

NewsColony Players who breached social-distancing rules put NRL restart at risk, Federal Sport Minister says NRL players guilty of breaking social-distancing laws have put the league’s planned return to action at risk, according to the Federal Sport Minister. Key points: The NRL wants to restart its 2020 season — suspended due to the coronavirus pandemic — on May 28 However the league has had to deal players flouting social-distancing rules The National Cabinet will meet on Friday to discuss its approach to resuming elite and community sport The league’s bold bid to resume its competition copped a major blow this week when three of its stars were fined for flouting social-distancing rules . Latrell Mitchell, Josh Addo-Carr ($50,000 each) and Nathan Cleary ($10,000) were also slapped with suspended fines by the NRL for bringing the game into disrepute. The incidents gave critics ammunition to question the league’s ability to follow strict protocol measures required to relau...