Furlough subsidy could be cut to 60%

Chancellor Rishi Sunak has reportedly started to plan for a phased withdrawal of the coronavirus job retention scheme, with one option under consideration being reducing the furlough wage subsidy from 80% to 60%. Another option would be for some furloughed staff to be allowed to carry out some work, but with a reduced subsidy. Mr Sunak has said that without any changes to the scheme, it would cost as much to support furloughed staff as to run the NHS, adding: “Clearly that is not a sustainable situation.” Around 800,000 employers have used the scheme to furlough staff, according to HMRC.

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