Government unveils wage
bailout scheme
Chancellor Rishi Sunak has
announced a major wage bailout scheme to cover the salaries of British workers
hit by the UK coronavirus crisis.
Under the scheme, the
government will pay up to 80% of workers’ wages, up to a maximum of £2,500 a
month.
Any British business, no
matter what size, can apply for a wage bailout if it is struggling as a result
of the coronavirus crisis.
In a speech, Mr Sunak
said: ‘Employers will be able to contact HMRC for a grant to cover most of the
wages for people who are not working but kept on payroll rather than being laid
off.
‘That means workers in any
part of the UK can retain their job even if their employer cannot afford to
retain them.’
Mr Sunak said there was no
limit on the bailout fund, and the government will back date the wage bailout
to 1 March and keep it open for at least three months.
The Chancellor also said
all VAT payments have been deferred between 20 March and 20 June, while income
tax payments for the self-employed have also been deferred for six months.