'PAID HOLIDAY'
STAY-at-home staff were last night offered state support until the end of October but many are so sick of being unable to return to work they are developing furlough fever.
Chancellor Rishi Sunak extended the Government's bailout scheme as he described the thousands of jobs already lost as "heartbreaking".
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It means the crucial support - due to end next month - will last for a total of eight months at an estimated cost of £80billion.
Last night, Mr Sunak tweeted: "I won't give up on the people who rely on the Coronavirus Job Retention Scheme.
"We stood behind Britain's workers and businesses as we came into this crisis, and we will stand behind them as we come through the other side."
But many staff fed-up with the enforced downing of tools are eager to get back to their jobs.
All workers on the scheme will continue to be paid 80 per cent of their wage up to a maximum of £2,500 a month for the time they are off work.
But from August, employers will have to pay a contribution to keep staff furloughed.
They will be allowed to bring workers back to work part-time with the Government continuing to pay a portion of their wages.
Some economic experts last night claimed that waiting until August to make the scheme more flexible will keep firms and other workshy employees addicted to the government's wage support.
So far, 7.5million workers have been furloughed by nearly a million companies.
Many are desperate to return to work but bosses claim it will be hard difficult to persuade some other staff to return.
Nicky Jolley, managing director of human resources firm HR2day, said: "There are some employees who have quite enjoyed weeks off with 80 per cent pay.
"And with beautiful weather, schools closed and perhaps a partner furloughed or having lost their job, there have been some requests to remain on the scheme.
'A PAID HOLIDAY'
Help in "Sadly, this is putting strain on businesses who need staff back." Professor Len Shackleton, from the Institute of Economic Affairs, said: "The Chancellor's announcement will tend to keep businesses tied to government funding for longer than strictly necessary and delay readjustment to what is a greatly changed economy.
"The intention to make the Job Retention Scheme more flexible is welcome but waiting until August before asking businesses to begin sharing the cost of furloughing and encouraging employees to return to work at least parttime, means billions of pounds extra taxpayer spending."
But Mr Sunak, who turned 40 yesterday, said he wanted to preserve as many people's jobs as possible. He said: "We already know that many people have lost their jobs and it breaks my heart."
Last night, he told the BBC: "This is an expensive scheme, and I've said that point before but I also believe it's absolutely the right thing to do.
"The cost of not doing this for society, for our economy, for our country, would be far higher."
His move was welcomed by business groups and trade unions. TUC general secretary Frances O'Grady called it a "big relief for millions".
Businesses that must stay shut such as gyms, nightclubs, pubs and events companies could get special treatment, Treasury insiders said yesterday. But details will not be revealed until later this month. Today, the Self-Employment Income Support Scheme opens, allowing solo workers hit by the lockdown to claim grants of up to £7,500.
However, Mr Sunak has not said how long it will last.
Treasury documents now suggest that the coronavirus crisis will cost taxpayers close to £300billion.
Britain's budget deficit will climb from a forecast £55billion to £337billion and lead to tax rises and spending cuts of up to £30billion.
That would be the equivalent of a 5p in the pound rise in the basic rate of income tax.
Marketing: Karolina Cala, 25
3
KAROLINA Cala is on furlough from her role as marketing manager for Calla Shoes in Manchester.
The 25-year-old said: “We make shoes for women with bunions — it’s a very specialist company!
“Our entire team was furloughed apart from the founder who has stayed to try and keep it going.
“I love my job and can’t wait to get back. I’d rather be working instead of taking government money.”
Construction: Phil Elmes, 37
3
DAD-of-two Phil Elmes, from Plymouth, Devon, is a construction site foreman who has just returned to work for building company AD Williams.
He said: “It’s great being back at work — without us the whole country will grind to a halt.
“We’ve got the correct PPE and stations so we can hand wash frequently. I feel really safe and glad to be back doing the job I enjoy.”
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Pub Chef: Rosa Webber, 23
3
ROSA Webber from Hythe, Kent, was a pub chef but has been refused furlough money because she had only just started her job.
She said: “I don’t qualify for Universal Credit because my fiancé is working and I don’t qualify for Jobseeker’s Allowance because I have a job. I’m just not allowed to do it at the moment.
“The Chancellor should be helping new starters like me.”
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Chancellor Rishi Sunak extends furlough scheme with 80% pay for FOUR months until the end of October
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