185,000 U.K. Businesses Use Government Job Retention Program
185,000 U.K. Businesses Use Government Job Retention Program
(Bloomberg) --
About 185,000 U.K. businesses have used the government’s job retention program so far, making claims costing 1.5 billion pounds ($1.8 billion).
The system, where the government offers to pay 80% of the wages of staff that have been furloughed due to the virus, has benefited 1.3 million jobs, a Treasury spokesman said on a call with reporters on Tuesday.
Chancellor of the Exchequer Rishi Sunak introduced the program as part of an unprecedented package to support the U.K. economy through the coronavirus crisis.
The country faces a major contraction in the coming months: output could fall by more than a third and unemployment rise to more than 2 million, according to a forecast by the Office for Budget Responsibility.
The government has also issued about 6 billion pounds in direct grants to just under 500,000 firms, the spokesman said. The figure is about half of the sum set aside for such support, and money continues to be delivered by local authorities.
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