£1000 per employee to keep people on after furlough

[AKissAndASmile]

This government seriously concerns me. There is no common sense at all. A company who has decided to get rid of someone to save the £20k a year salary is not going to be tempted by a one-off payment of a grand. And companies that were going to keep furloughed staff on anyway will also get this bonus £1k per employee. If you furloughed 100 staff that's £100k Sounds pretty hare-brained to me. Why don't they use the money for something useful like scrapping the parking fees for NHS staff instead?

I remember reading one company furloughed 36,000 employees. So they could be in line for a £36m payout. 🙈

Might encourage them to keep an employee on for another month - by which point 'things' might have picked up a bit.

I'm totally guessing. Nothing this government does makes sense to me.

The hope is that the companies keep them on until January (2 extra months wages) then things pick up again in the new year and these companies keep the staff... Simple really... Would have really helped me out however our companies contract is up in November anyway so doesn't help me.. Good idea tho

Something has to be done to avoid mass unemployment. Can't see it will do any harm?? The magic money tree has plenty of fruit in it this year!!!

Might encourage them to keep an employee on for another month - by which point 'things' might have picked up a bit. It will cost the company more than the grand to keep employees on, so it's not going to save any jobs. It's just a lovely bonus for businesses that were going to keep people on anyway. Businesses will get the money even for people who have already been unfurloughed and back at work for ages.

The magic money tree has plenty of fruit in it this year!!!

Tax payers are the magic money tree. Me and DH were beginning to think we're the only couple in Britain who won't have had any government money during Covid. I know we're not! Just feels like it.

I remember reading one company furloughed 36,000 employees. So they could be in line for a £36m payout. 🙈
But a company of that size £ 36m is a drop in the ocean .
I do think unless it's big companies with 100s of redundancy on the cards it's not going to be a big incentive.

I was shocked, but if it avoids mass redundancies it’s probably cheaper than paying benefits and getting no tax and NI, and if people keep being employed and keep spending then they economy won’t collapse in on itself like a black hole

But a company of that size £ 36m is a drop in the ocean .
A drop in the ocean to them, so it is a waste of taxpayers money. It won't save any jobs.

Tax payers are the magic money tree. Me and DH were beginning to think we're the only couple in Britain who won't have had any government money during Covid. I know we're not! Just feels like it.

Cheer up, you get £10 off Nandos on a Monday in August

If a company has furloughed 36,000 staff I assume they won't still be employing them all when furlough ends

Also companies are having to start to pay some of the furlough costs, so I assume some people will be made redundant soon

Yes exactly there are many redundancy currently in consultation, will this payout stop this unlikely but possibly some jobs may be saved .
I do think it's a good thing but I'm sceptical if it'll work .
I'm not sure what the alternative is I don't think extending the furloughed scheme is the answer so I suppose bonuses for employers is the answer .

It gives a lot of cash to big businesses who are still paying shareholders?

The government really don't seem to have cc'd a clue what they want to achieve, there's no point staving it off till January unless there is something different on the cards then.

Cue lots of furloughed staff being kept on as part timers so the company can put the maximum claim in

@BlueBrian

Cue lots of furloughed staff being kept on as part timers so the company can put the maximum claim in

⬆️ this plus the added bonus of part timers presumably not being counted as unemployed?

£1k won’t encourage a company to keep an unwanted employee who costs 10-50 times that. It’s just free money for businesses who were keeping employees anyway.

How about those who have worked throughout get £1000!! Have a few months off at home safe with your family and be paid at worst 80% wages then get £1000 bonus for going back to work!
And before anyone says those who were furloughed didn't get a choice neither did those who never stopped working many leaving the safety of their homes to serve the public in 1 way or another and keep the economy going

The logic might be that a business that needed to furlough staff might have suffered financially from a drop in business and that the £1k per furlough employee could help them stay afloat in order to stabilise and secure those jobs long term.

It's a simple and cheap (in terms of admin and compliance costs) way to direct financial support to businesses.

I think a lot of the announcements today are more intended to influence behaviour and restore confidence for consumers and businesses.

My DH has kept working and accepted a 10% pay cut as did all the management in the company.

be paid at worst 80% wages then get £1000 bonus for going back to work!
The employee doesn’t receive £1000. The employee does.

*employer

Have a few months off at home safe with your family and be paid at worst 80% wages then get £1000 bonus for going back to work!

The employer receives the £1k, not the furloughed employee.

The government really don't seem to have cc'd a clue what they want to achieve, there's no point staving it off till January unless there is something different on the cards then.
And Brexit will happen in Jan!😬

@Stressing

Tax payers are the magic money tree. Me and DH were beginning to think we're the only couple in Britain who won't have had any government money during Covid. I know we're not! Just feels like it.

We're exactly the same @Stressing - not a penny has come our way, even though we could have done with it - yet of course our taxes will go up soon enough!