Job retention scheme receives nearly 70,000 applications in 30 minutes
The government’s wage subsidy scheme received almost 70,000 applications in the first 30 minutes of opening this morning as businesses rush to claims funds to pay furloughed staff.
The job retention scheme sees the government pay 80 per cent of wages, up to £2,500 a month, for furloughed employees unable to work due to the coronavirus crisis.
Chief executive of HM Revenue and Customs Jim Harra told BBC Radio 4 morning that 67,000 applications were received in the first half an hour after it opened this morning.
“We have scaled our IT system to cope with the maximum number of claims,” he said.
“There are over two million PAYE schemes and our system is big enough to handle a claim from every one of those.”
Firms are now able to apply for the scheme through a new HM Revenue and Customs online portal, with payment coming through within six working days.
The initiative was extended earlier this week until the end of June.
Chancellor Rishi Sunak said today that the package would “protect millions of jobs across the country”.
The Resolution Foundation, a left-leaning think tank, estimates that eight million people will be paid out through the scheme and that it will cost up to £40bn for every three months it runs.
British Chambers of Commerce director general Adam Marshall added: “With April’s payday approaching, it is essential that the application process is smooth and that payments are made as soon as possible.
“Any delay would exacerbate the cash crisis many companies are facing and could threaten jobs and businesses.”