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NPA welcomes Chancellor's unprecedented support with wages

23rd Mar 2020 / By Alistair Driver

The NPA has welcomed the extraordinary announcement by Chancellor Rishi Sunak that the Government will cover 80% of the wages of staff unable to work due to coronavirus.

Rishi SunakOn Friday, Mr Sunak announced the new Coronavirus Job Retention Scheme, which will be open to any employer in the country – small or large, charitable or non-profit.
Employers will be able to contact HMRC for a grant to cover most of the wages of people who are not working but are kept on the payroll, rather than being laid off.

Grants will cover 80% of the salary of retained workers up to a total of £2,500 a month, with employers being encouraged to top up the salaries.

“That means workers in any part of the UK can retain their job, even if their employer cannot afford to pay them, and be paid at least 80% of their salary,” Mr Sunak said.
The scheme will cover the cost of wages backdated to March 1 and will be open initially for at least three months. It will be extended, if necessary. No limit is being placed on the amount of funding available for the scheme.

“We will pay grants to support as many jobs as necessary,” Mr Sunak said.

NPA senior policy adviser Ed Barker welcomed the announcement. “This unprecedented step will protect employees across the pork supply chain and enable businesses to retain staff that cannot work during this crisis. 

“Importantly, it also means that workers who suspect they might be infected will be more likely stay at home, rather than feeling they have to come into work, a move that could put other people at risk.”

This is the latest announcement from the Chancellor on measures to support businesses and employers through the crisis.

 While the measures have been welcomed, there is concern that, so far, they do not offer much-needed support for the self-employed.

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