Can someone please explain the 80 per cent salary cover

[noFlowers]

Sorry if I'm being stupid but what does this mean!

Does it mean businesses who may lay off staff get 80% of staff salaries to pay them so they can still work.

Or does it mean you lost your job due to all this and you're at home and you get 80% of your salary.

It means that if businesses retain staff on payroll, even if they have no work eg waiting staff, bartenders etc, the government will cover 80% of staff salaries (up to £2500 pm) if the business cannot afford to do so. It’s to mitigate against redundancies.

Thank you for that!.

Ohhh now I can see why the self employed are pissed off.

I wondered this too. I'm not 100% sure on the conditions of it but it seems like a brilliant move for employees.

So will that apply to me ? I'm had my hours cut due to the Coronavirus but I've managed to work childcare round my husband's shifts with school closing . Will I get extra even though I can't work my usual hours due to closures ? .

It’s for people who remain employed. If you can’t afford to pay your staff because you had to shut (eg pubs) you keep them employed and the govt subs their wages, the idea being that they will return to work when the business resumes.

It is not a form of unemployment benefit.

Employers won’t be expected to pay the remaining 20% will they?

Does anyone know if it will apply to people who would otherwise have to take unpaid leave due to lack of childcare rather than lack of available work? Because so far that is all my employers have come up with.

I’m interested to know if it will apply to those who can’t work due to being high risk or because of childcare

I would think much more of an employer who made it up to 100% for those on minimum wage. Doubt they'll do it, though.

Employers "can" pay the extra 20% amsd Boris sort of encouraged them to do so in a wishy washy way with his "get behind your workers" speech. But HMRC will pay a grant to employers who apply for it that covers 80% of salaries up to £2500 per month.

@fleamadonna our unions have advised we absolutely should be on full pay so yes, they’ll be expected to pay the 20% - I suppose it comes down to if they’re able.

I think that's a big ask of a small business with no income HollowTalk

It's kind of an open invitation for companies who are still fully operational to expect working employees to take a 20% pay cut. Isn't it?

I know that's not what was said, just cynical.

Dh got told on wed that as of next week his hours would be cut from 40 to 24. Wonder if his employer will bother and if it will be 80% of 24 or his normal 40 hours.

Workplace is a hotel so unsure if theyll be shut from tonight

There will be plenty of caveats to ensure employers who are fine with staff who are working normally can’t screw them Over or profit. Similar schemes exist in Spain and France and there are lots of caveats.

What would we prefer ?

A 20% pay cut or no pay at all

@thelittlefox but surely better to take a 20% pay cut in the short term, than lose your job altogether because the company has gone bust.

And to offset this obscene cost, once things are ‘back to normal’, tax payers will be absolutely squeezed dry. I understand we need to shore up the economy/support people keeping their jobs, but it’s going to be extremely tough for us for a long time after. Bloody terrifying.

I think its a fabulous thing.
I now have a wage and a job to go back to when it's all over and for that I'm eternally grateful

So its basically a loan for employers that they will have to pay back?

No it's a government grant

I know it all has to be paid for one way or the other, but the alternative is potentially having millions of people out of work and needing to claim benefits. The DWP caving under the strain, huge numbers of homeless on the streets because councils can't cope - and that's before you get into businesses folding, empty shops on the high street not paying any rates and people not able to spend anything because they are broke...

It makes far more sense to have this interventionist step now to try and protect people. Plus I suspect it will be cheaper in the long run than having to provide benefits/business/council bail outs. And if it means that I pay more tax, then that's the cost of living in a society that has a safety net when the shit hits the fan. And I say that as a higher rate tax payer.

Oh that's great news at least workers have got some protection now.

Employers won’t be obligated to pay the 20% but can if they wish