UK Chancellor Considers Wage Subsidies to Replace Furlough Scheme

The UK Chancellor Rishi Sunak is considering implementing wage subsidies to replace furlough scheme when it ends at the end of October

The UK Chancellor Rishi Sunak is considering introducing German-style wage subsidies to replace furlough scheme when it ends at the end of October.

A wage-subsidies scheme, similar to the German Kurzarbeit (“short work”) system, would see the government paying the wages of workers for time they are away from their jobs.

This is one of a number of options reportedly under consideration following talks with businesses and unions over how to stop redundancies when the furlough scheme ends.

Speaking to MPs on Tuesday (September 22) Boris Johnson said that he recognised there were further demands for economic support.

“I know that my right honourable friend the chancellor will be applying, as I say, his imagination and his creativity to helping those sectors in the months ahead,” he said.

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