UK urged to defer winding down of salary support program

Business leaders and unions have joined forces to urge the British government to maintain a salary subsidy program that is being wound down over the coming months

LONDON -- Business leaders and unions joined forces Thursday to urge the British government to maintain a salary subsidy program that is being wound down over the coming months — or else see unemployment rise sharply. The Job Retention Scheme was introduced at the start of the pandemic last March to ensure unemployment didn't rise substantially when lockdown restrictions were imposed. Under the program, the government paid 80% of the salaries of those workers unable to work because of lockdown measures. The program helped support over 11 million people but the number now is down around the 2 million mark as many sectors have reopened, notably hospitality. It kept a lid on unemployment, which remains relatively low at around 5%. On Thursday, that support started to be phased out with companies with staff still on furlough having to pick up 10% of the bill. Further tapering is due over coming months before the scheme is due to end in September.