How government can protect viable jobs in the short and medium term

Many parts of the UK economy, from the creative industries to manufacturing, are still being affected by the impact of measures introduced to control the pandemic yet have viable businesses and jobs in the longer term. As we head into Autumn, where additional restrictions are being imposed, government has a vital role to play in protecting viable jobs and smoothing adaptation of the economy. While the Job Retention Scheme (JRS) was vital when the pandemic started, a more targeted scheme is needed. 

What the CBI is calling for:

• A new, short time working scheme to be in place by 1 November once the JRS ends
• It would be a (semi) permanent scheme, to make the economy more resilient to new ways of working and changes in demand in the future
• Open to all businesses, not just those who have previously used JRS 
• Firms would have a choice about whether to use this new scheme, or take advantage of the job retention bonus
• The individual would have to work a minimum of 50% of their normal hours and the employer would pay 100% for the time the individual is working
• For non-working hours there would be 1/3, 1/3, 1/3 split between employer, employee and government
• There could be some conditionality introduced and it could be built on similar transmission mechanism to the JRS, using HMRC, to help it go live rapidly. 

If you would like to know more, please get in touch with Principal Policy Adviser, Fiona Geskes.