Infosys among UK firms accessing Rishi Sunak's Covid-19 job saving scheme

Andrew Cummings
June 1, 2020

Infosys, co-founded by the chancellor's father-in-law Narayana Murthy, said it had used the furlough option for 3 per cent of its staff in order to tide through the lockdown imposed to curb the spread of the deadly virus.

But there will be hardship ahead for many and I will work very hard to get people back into jobs, ” he said, when asked about looming unemployment as the lockdown is lifted.

Chancellor Rishi Sunak said at today's briefing that employers will be expected to make a contribution towards employees' wages.

He said that in June and July the scheme will stay the same, but in August employers will be asked to contribute to National Insurance and employer pension contributions, In September, they would pay 10 per cent of the 80 per cent employees are receiving and in October that would change to 20 per cent of the total.

"However the stark reality is that there are now many viable employers with no cash-flow who are looking at months before they can fully resume operations".

He also revealed that the self-employment income support scheme will be extended meaning those who are eligible will be able to apply for a second and final grant in August.

The Office for Budget Responsibility, the government's independent economic forecaster, has forecast that the overall bill for the government's jobs subsidy schemes could hit £80bn, pushing the overall cost of fighting the coronavirus outbreak to more than £300bn.

Sunak also brought forward to July 1 the start of part-time work under the programme, a demand of businesses seeking to rebuild gradually.

It comes as the latest UK-wide figures show another 324 people have died after testing positive for coronavirus in hospitals and the wider community, bringing the total to 38,161.

Under plans to be announced by Rishi Sunak over the next few days, the support given by the furlough scheme will be cut back due to government concerns about its spiralling cost and the likely impact on the UK's growing public spending deficit. But the government will do what it can to help people thrive in the post-COVID world, ” Sunak added. That's 23% of the gross employment costs the employer would have incurred had the employee not been furloughed.

Other reports by iNewsToday