Last minute announcement to extend Coronavirus Job Retention Scheme came too late for the many who had already lost their jobs

Joseph Rowntree Foundation says government must set out clear, long-term plan covering different COVID-19 scenarios so that employers can plan effectively

The last minute announcement to extend the Coronavirus Job Retention Scheme (CJRS) came too late for the many who had already lost their jobs, according to the Joseph Rowntree Foundation (JRF).

While acknowledging that the decision to extend the CJRS will provide an essential lifeline for many workers, the JRF suggests that the timing of the Prime Minister's statement - on the day the Scheme was due to come to an end - reduced its ability to protect jobs as employers had anticipated a continued reduction in trading capacity and less generous support to retain jobs through the winter, and had therefore already laid staff off.

Arguing that the Chancellor’s failure to provide clear policy for different coronavirus (COVID-19) scenarios has led to confusion, hampered businesses’ ability to plan, and undermined confidence in his own announcements, the JRF puts forward three urgent priorities to provide certainty for businesses and protect jobs - 

1. Enable employers to furlough employees who are unable to work due to childcare or health vulnerabilities to ensure they are protected.
2. Set out the support that will be available to retain staff in the event of any further national lockdowns in the six months from 2 December 2020 - clarifying the cost employers will face, for example, and whether there will be employer contributions towards unworked hours if furloughing staff full- or part-time after this initial month of lockdown?
3. Make use of the next four weeks to provide full details of the economic support packages available in various exit scenarios from a National lockdown, such as the return to a regional tiered approach. 

For more information, see Last minute extension of furlough undermines its effectiveness from jrf.org.uk