One million employees already registered for job retention scheme
More than 140,000 firms counting for one million furloughed employees have registered to the government’s coronavirus wage subsidy scheme in its first day.
The scheme opened this morning at 8am and received almost 70,000 applications in just half an hour.
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.
Companies will be first paid within six working days of registering for the programme.
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.
At the press conference, Sunak said those already registered for the scheme were “a million people who if they had not of been furloughed would be at risk of losing their job”.
He added: “Times like this demand the sate turns to its most immediate purpose – the protection and support of its people.”
Sunak also discussed the government’s new £1.25bn package to support startups through the coronavirus period.
This will involve a new £500 million loan scheme for “high-growth firms” and £750 million of support for small and medium sized businesses focusing on research and development.
“As we look ahead and plan for recovery, it’s critical we don’t just maintain jobs and companies that already exist, but we also encourage businesses, jobs and technology of the future,” he said.