Furlough scheme set to be extended to September (at reduced 60 percent rate)

[DreamChaser23]

www.telegraph.co.uk/business/2020/05/10/job-retention-scheme-set-extended-september/

An announcement is likely today or tomorrow.

Thoughts?

I think 60 percent is an impossible amount to live on. Not to mention not everyone can go back to work (i.e. no social distancing measures), (the business is still shut) A lot more people will still struggle month to month.

Knowing the Tories I wouldn't be surprised if month by month they reduce furlough from 60 to 40 then eventually getting rid of the scheme...

The problem is that the government cant tell if each individual business can work or not.
Technically where I work could have stayed open (I think 1 person has been in) it's a small workplace, could mostly work 2m away from others, and not open to the public. However there was no work to actually do.....and probably wont be for some time. No one has placed any orders since March and if they did all our suppliers are closed anyway.
On paper I'm sure a government minister would look and think it's fine and low risk....

It's better than being made redundant. I feel for those that have been wfh, juggling childcare, and will be made redundant anyway.

I agree with the poster saying women with children are being adversely affected by all of this most due to childcare etc. Not so easy to just find a new job then is it

"I think 60 percent is an impossible amount to live on"

Eh, how do you think people on benefit manage?

And, this is going to be an unpopular opinion, but the vast majority of people should have some savings for exactly what this is, a rainy day. Not everybody will be able to afford to save, of course, but everyone who's had a holiday abroad in the last year, or bought or financed a brand new car rather than an old one, or who has major house renovations, or plastic surgery, or brought the biggest house their mortgage will stretch too, or even expensive haircuts, has deliberately chosen to spend their money on that rather than save the recommended six months - a year of their salary to give them that safety buffer.

I've had none of the things on your list.my car is 12 years old. I last had a haircut last summer, we have a takeaway or meal out maybe every 2 months. I had some savings (maybe enough for 2-3 mortgage payments) and they were in an isa. That used to be a recommended way to save....its probably worth about a tenner now.

It's awful but yes, 60% is better than benefits for most, or people will have to apply for the jobs that are available - social care/supermarkets etc.

Some employers will continue to top up to 100%.

Eh, how do you think people on benefit manage?

What a bloody stupid thing to say.

People on benefits live to their means just as people on higher incomes do. I did when I was claiming them.

But when my income increased I bought a house instead of renting, no one is going to help me pay that as they would if I was renting. I had children I could afford when I had them but who dont cost any less now my income has drastically reduced.

My outgoings are based on what I could afford to pay from my income, same as most peoples are, working or not working. So a drop in income like that will have a massive effect and only a bellend would suggest it wouldnt.

A whole additional 3 months??

Unless it was kept to a very few they'd have to be absolutely insane - the country simply can't afford this, and with the system already being roundly abused there'll be too many who'll simply come to see it as an entitlement

As suggested, it may just work if severely restricted, but there clearly aren't enough people to check eligibility - and anyway what's the point if deaths go on decreasing to the point there are hardly any?

Good news for many parents on here - nurseries opening I believe when Reception classes in primary schools do - I think they said 1 June.

60% will force me to seek new work. Which will mean an end to staying at home. Is that what the government wants?

Well, yes. They got rid of the "stay at home" message for a reason.

People can't stay on furlough forever.

Maybe mortgage lenders will extend the repayment holidays?

Eh, how do you think people on benefit manage?
With all due respect it's not the same.
I work FT and have an income coming in that I have allowed myself to 'live within my means' based on what I have coming in each month - mortgage/debt/ etc..
At no point did anyone, never mind me, see this coming.
Not to mention the fact that I do not get any help (Council tax/rent reduction etc which people on benefits do and rightly so)
While it wouldn't be a hardship to change where I shop to save money or generally buy less and cut back, being on benefits and having a FT wage cut to 60% aren't comparable.

So a drop in income like that will have a massive effect and only a bellend would suggest it wouldnt.

Yeh, and only a bellend couldn't manage to live on less money, being up to the hilt in debt and luxury lifestyle choices. {grin]

Will mortgage holidays be increased? It’s the only way people will cope surely
That ends in June

Full timers in most restaurants would be earning about £650 a month. Luckily my brand is topping up to 100% until June but I presume this won't continue much longer!

Possibly a daft question but when nurseries open, will childminders be able to work too?

surely the amount needs to be based on demand? If you have a job that can bring you back for 50% of the time, then fine. But if you'e workign for a restaurant that won't open until September then you need supporting - or you'll be made redundant

The people on benefits are probably amongst the few not affected by Covid 19
( have benefits been cut to 80%)so I agree with @CarolefeckinBaskin you can’t compare

Furloughed workers are allowed to take up payed key worker roles while on furlough. 80% was never going to be sustainable for long and businesses need to start working out how to make it safe for people to return. If an extra few months at a rate of 60% gives them the opportunity to reopen gradually without making their workforce redundant and income-less then it could be very valuable.

So does it drop to 60% in July?

Oh no
My son is an apprentice in a restaurant and earns a whopping £3.90 an hour.
At 80%he could just cover his rent and I have helped him with food. At 60% I doubt he will cover his rent. The obvious thing would be to give up his room but it's cheap and close to his work, and took a while to find in the first place. Not many people want to rent to under 18s.

Yeh, and only a bellend couldn't manage to live on less money, being up to the hilt in debt and luxury lifestyle choices

My mortgage isnt cut by 60%, or any of my bills, or my children appetites. Sorry to disappoint but no credit cards or luxury lifestyle choices here, just a single parent trying to keep a roof over her familys head and food in their bellies.

@Abreadsandwich - that's why I said MOST not ALL people can afford to save. Although I started my 'no luxuries until I have six months wages in savings' policy back when I graduated in the last recession and was on minimum wage for my full time job (£11995 in 2009), so it's hardly impossible for, again, MOST people.

I know some people don't have much spare income...that's obvious. But more than 2 thirds of people in the UK went on a foreign holiday last year, with many of these going abroad more than once. 2.4 million cars were bought on finance in 2018. You only have to read mn or any comment board or work in an office to see how many people do buy coffee/lunch for work every single day. It might not be your circumstances but a huge amount of people do, or did, have money to spend on luxuries and chose to do so over saving.

I don't know what you mean by your ISA comment - if you saved enough for 2-3 mortgage payments (so technically agreeing with what I've said ) then unless your mortgage has gone up then you still have 2-3 mortgage payments worth in there. It's only the interest rate that has decreased, not the amount you saved. If your mortgage is £500 p'm and you saved £1500 in an isa it's still there and available for you to spend on your mortgage....

@squiglet111

Yeah... 1200 as a one-time payment. They also implemented some other things.

Some states extended snap benefits (this is money to cover food costs).

They passed the families first coronavirus response act, which allowed anyone who had to stop working to care for children who are home because of school or daycare closures or who had to care for someone who was sick to take 12 weeks off work at 2/3 pay.

They also are giving everyone who was laid off or fired and is collecting unemployment an extra $600 per week. So that's at least 2400 extra per month on top of unemployment which is around 50% of their wage. (They also extend the amount of weeks a person can claim unemployment)

Still shit for sure. The government is focusing on helping large corporations and the wealthy (through proposed payroll tax deductions...) Rather than the every day people. Very short sighted IMO. They have a "let's wait and see" attitude for the country's citizens. Trump has also flat out said he doesn't want to help states because if their own inability to manage their finances... But I thought we were the UNITED States of America....

Btw... I just wanted to share info and opinions... This isn't meant to be an argument or anything haha

I read on here that tomorrow's press conference will be led by the Chancellor so official word then.