LONDON (May 23): The UK has drawn up plans to require employers to cover 20% to 30% of furloughed employees' wages from August to reduce the vast burden of the Covid-19 crisis on government finances, The Times newspaper reported.
The UK on May 12 extended its job retention scheme, the centrepiece of its attempts to cushion the Covid-19 hit to the economy, by four months but told employers they would have to help to meet its huge cost from August.
"The Treasury has drawn up plans that would require employers to cover between 20% and 30% of people’s wages," The Times said. "They would also be required to cover the cost of employer's national insurance contributions, on average 5% of wages."
Finance Minister Rishi Sunak is expected to announce the changes next week, The Times said.
Sunak said yesterday that Britain was facing a "very serious economic crisis" and jobs would be lost in the "days, weeks and months to come".