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UK furlough scheme now covers 8.4 million workers!


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Hey it's only £15bn/month...

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Some 8.4 million workers are now covered by the government's furlough scheme, up from eight million a week earlier, the Treasury has said.

Claims for subsidies filed by employers rose to £15bn from £11.1bn, it added.

The scheme, brought in to mitigate the effects of coronavirus, allows employees to receive 80% of their monthly salary up to £2,500.

A similar scheme for self-employed workers saw 2.3 million claims made worth £6.8bn.

The Self-Employed Income Support Scheme, as it is known, differs from the furlough scheme because it is a grant paid out in a single instalment covering three months and amounting to 80% of average profit.

The furlough scheme, officially called the Coronavirus Job Retention Scheme, was originally intended to last until the end of July, but has now been extended until the end of October.

Chancellor Rishi Sunak has confirmed that it will continue to provide the same level of earnings, but has said the government will ask companies to "start sharing" the cost of the scheme from August.

Sources have told the BBC the Treasury stills expects to be paying more than half the costs between August and October.

Recent figures from the government's independent economic forecaster, the Office for Budget Responsibility, indicate that the cost of the government's efforts to combat the coronavirus pandemic is expected to hit £123.2bn.

The OBR expects annual borrowing to equal 15.2% of the UK economy, which would be the highest since the 22.1% seen at the end of World War Two.

It said it had increased its estimate because of the rising cost of the furlough scheme.

 

https://www.bbc.co.uk/news/business-52819591

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Just now, dougless said:

Complete conjecture I know but if only 20% of those furloughed staff are made redundant at the end of the scheme, that amounts to 1.6 million being added to the unemployment figures.

I bet it gets extended again until after Xmas .  Kick  the can down the road a little further.

 

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18 minutes ago, Warlord said:

Hey it's only £15bn/month...

Shocking.  The forecast annual funding gap to maintain health and social care provision is estimated to be around £4bn in 5 years' time - and we have been waiting a long time for a Green Paper to be published to address this.  Seems like small beer now.

I'd rather they used the printed money to fund a massive national home building initiative - at least there would be some lasting benefit and some job creation - maybe the government will stumble upon this eventually...

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6 minutes ago, Warlord said:

I bet it gets extended again until after Xmas .  Kick  the can down the road a little further.

 

I actually think the only way out of it for the government is to relax the lockdown faster, obviously that many people is unsustainable, so relax rules and it doesn't have to pay.. 

I know wishful thinking on my part, but it does seem to be what's happening

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11 minutes ago, dougless said:

Complete conjecture I know but if only 20% of those furloughed staff are made redundant at the end of the scheme, that amounts to 1.6 million being added to the unemployment figures.

Interesting point :) 20% is being conservative

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7 minutes ago, Loving The Crash said:

Shocking.  The forecast annual funding gap to maintain health and social care provision is estimated to be around £4bn in 5 years' time - and we have been waiting a long time for a Green Paper to be published to address this.  Seems like small beer now.

I'd rather they used the printed money to fund a massive national home building initiative - at least there would be some lasting benefit and some job creation - maybe the government will stumble upon this eventually...

They need to prop up incomes and for mortgages to be paid otherwise their would be mass unemployment which will just happen later on. They're kicking the can down the road. My guess is this scheme will be extended for as long as they can keep lenders fooled into believing they can pay this back .  Debt heading to £2 trillion +

And yeah I agree with you about much being made of social care (couple a billion) compared to this! 

Edited by Warlord
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27 minutes ago, Warlord said:

Hey it's only £15bn/month...

https://www.bbc.co.uk/news/business-52819591

What's that about 1 in 4 working people ?

50% of the workers are public sector workers so they wont have been furloughed

So I make that, 50% of the ACTUAL TAX PAYERS generators have lost their jobs.

That's doesn't count the redundances.  

We could be looking at 20% of the working population paying for everyone else.  

This is insane.

 

Edited by TheCountOfNowhere
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3 minutes ago, Grayphil said:

I actually think the only way out of it for the government is to relax the lockdown faster, obviously that many people is unsustainable, so relax rules and it doesn't have to pay.. 

 

The government could say, Lockdown over, but older people still shield.

 

If you want to continue lockdown fine, but pay for it yourself.

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12 minutes ago, Warlord said:

I bet it gets extended again until after Xmas .  Kick  the can down the road a little further.

 

All those hospitality staff including those who work in pubs, cafes, restaurants - as well as gym, theatre and cinema staff aren't going back to work anytime soon. If you just do take aways no need for waiters or plate washers either.

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1 minute ago, TheCountOfNowhere said:

What's that about 1 in 4 working people ?

50% of the workers are public sector workers so they wont have been furloughed

So I make that, 50% of the ACTUAL TAX PAYERS generators have lost their jobs.

That's doesn't count the redundances.  

We could be looking at 20% of the working population paying for everyone else.  

This is insane.

 

To be fair the majority take out far more than they pay in in services - one school place costs more than someone earning £35k a year pays in income tax alone. And that is before you factor in tax credits etc etc - which essentially eliminate their tax anyway.

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Just now, MARTINX9 said:

All those hospitality staff including those who work in pubs, cafes, restaurants - as well as gym, theatre and cinema staff aren't going back to work anytime soon. If you just do take aways no need for waiters or plate washers either.

A lot of people seem to be liking calling up food on an app, rather than going to a restaurant, so this could lead to a permanent change of behaviour.

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Just now, reddog said:

A lot of people seem to be liking calling up food on an app, rather than going to a restaurant, so this could lead to a permanent change of behaviour.

Yes - until obesity due to lack of gyms and exercise and too much snacking at home creates other health problems of course.

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3 minutes ago, reddog said:

The government could say, Lockdown over, but older people still shield.

 

Do you have the stats for under 60's getting it/dying. I seem to remember it being quite low...

 

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1 minute ago, MARTINX9 said:

To be fair the majority take out far more than they pay in in services - one school place costs more than someone earning £35k a year pays in income tax alone. And that is before you factor in tax credits etc etc - which essentially eliminate their tax anyway.

You need to remember that the public sector dont actually pay in it just looks like they do.

We put in, they take out and put a bit back in, effectively they contribute 0 to the tax take.  They contribute to society instead. We pay them to do work for is....sure doesn't feel like that tho.

 

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3 minutes ago, TheCountOfNowhere said:

You need to remember that the public sector dont actually pay in it just looks like they do.

We put in, they take out and put a bit back in, effectively they contribute 0 to the tax take.  They contribute to society instead. We pay them to do work for is....sure doesn't feel like that tho.

 

I was talking about non public sector workers.

Of course the dividing line isn't clear anymore given all the bailouts and schemes diverting resources banks, developers and big corporates have got or get. They suck far more off the taxpayer teat globally and locally than most public sector workers.

Edited by MARTINX9
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2 minutes ago, MARTINX9 said:

I was talking about non public sector workers.

Of course the dividing line isn't clear anymore given all the bailouts and schemes diverting resources banks, developers and big corporates have got or get. They suck far more off the taxpayer teat globally and locally than most public sector workers.

I get that.  Say someone covers their own childs schooling costs at 35K, they need to be earning £70K to support the public sector workers child, or the PS needs to be paid a LOT less, or we need a LOT less public sector workers.

This is not what is happening right now.

I've not even factored in the massive service industry, they dont generate wealth, just pay tax on others.

The is why the UK is a mess, there is little wealth creation, the establishment know this so they are just taking everyone elses.

The time of the landed gentry is upon us again, I think it will be short lived this time around.

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7 minutes ago, Warlord said:

Do you have the stats for under 60's getting it/dying. I seem to remember it being quite low...

 

Not off hand, but I believe under 15's have a greater chance of dying due to being struck by lightning, and unders 60's have a greater chance of drowning.

 

Obviously over 60s are the worst affected, but even they have a very high likelihood of recovering.

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2 minutes ago, Trump Invective said:

People already realise it's too much money. When the contribution expectation for businesses is revealed later this week, and it's not just the taxpayer bailing everyone out, things will quickly change and people will be off back to work.

Or off down the dole office.

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