Furlough Response

Planning for the recovery

Following the announcement from Rishi Sunak that the furlough scheme will be closed to new entrants from the 10 June and that employers will only be asked to pay a modest amount for the remainder of the scheme, Samantha Hurley, Operations Director at the Association of Professional Staffing Companies (APSCo) said:

In line with our recommendations

“When we wrote to the Chancellor earlier this month, we asked for a managed withdrawal from the furlough scheme in order to get the UK economy back to work. The fact that the scheme has been tapered down to allow workers back part time while still retaining their full time pay is a welcome move and is in line with our recommendations. This gives firms the flexibility they require to gradually bring furloughed employees back to work on a part time basis, with the percentage of salary funded by Government tapered down to address any increase in working hours. The fact that this is optional and employers will be able to leave employees on furlough if they choose until the end of October contributing 10% and 20% of furlough pay respectively is also welcome.”

Planning for the recovery

“Initiatives like the Job Retention Scheme have helped to protect employees throughout Covid-19. crisis. However, many employees face unemployment due to the impact of the lockdown and the longer lasting effects of Covid-19 on many sectors of the economy. A highly trained workforce will help support the economic recovery and so what we now need is for the Government to invest in reskilling opportunities both at a national and regional level to help businesses fill vacancies and reduce unemployment. This should include broadening how Apprenticeship Levy funds can be used. We would also urge Government to support the economic recovery by, where possible, continuing those spending initiatives outlined in the 2020 Budget. This will support jobs and economic growth and get Britain back to work.”

 

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