LONDON (UK) – Britain’s government will extend its costly coronavirus wage subsidies by a month to ensure workers who are temporarily laid off get 80% of their pay, Prime Minister Boris Johnson said on Saturday as a new England-wide lockdown was imposed.
Britain introduced the 80% wage subsidy scheme in March, which was likely to expire on Saturday.
The scheme supported 8.9 million jobs at its peak, and it was predicted to cost around 52 billion pounds over its eight-month lifespan.
Firms will have to contribute 5% of the employment costs for workers, who get covered by the extension, the finance ministry said.
Mortgage borrowers impacted by the pandemic and who have not yet had a break in return for the payment will be entitled to a six-month holiday, while those that have already started a payment holiday will be able to top up to six months, the ministry said.
Rishi Sunak said, “I have always said that we will do whatever it takes as the situation evolves. Now, as restrictions get tougher, we are taking steps to provide further financial support to protect jobs and businesses,” finance minister.”
“These changes will provide a vital safety net for people across the UK.”
