MORE than 140,000 firms have applied for the Government's furlough scheme on the first day - and it will pay the wages of one million people in days.
The Chancellor said that since the scheme opened up at 8am this morning, it had been inundated with requests for state grants.
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The scheme allows employers to claim up to 80 per cent of a furloughed employee’s wages, capped at £2,500 a month.
In all, 5,000 HMRC staff will man phones and webchat services to answer questions so money is available as soon as possible.
And it will pay them within six days, he said today, just in time for the April payday.
It comes as:
- Britain's lockdown could remain partly in place for a total of three months
- Deaths in the UK today rose to 16,509 after 449 more fatalities were recorded in the lowest increase for a fortnight
- Public Health England has been accused of being caught like 'rabbits in the headlines' when the crisis hit
- Prince Philip, 98, issued a rare public statement to praise 'vital' workers on the frontline
- Piers Morgan blasted the Culture Secretary for 'grotesquely underestimating' the number of people killed by the bug
- Scientists are probing a link between survival rates and Vitamin D
"We’ve never seen an economic crisis like this," the Chancellor told the nation this evening in the No10 press conference.
"Times like this demand that we put aside ideology and orthodoxy… times like this demand that the state turns to its immediate purpose - its protection and support of people.
"We promised the support would be available by the end of April.
"Today we deliver our promise."
He said that 140,000 firms had applied for help in just ten hours today.
That will pay the wages of at least one million people - who may have lose their jobs otherwise.
The Sun Says
THERE’S not much to celebrate at present. But one million jobs were saved on Monday.
Rishi Sunak’s furlough scheme to pay 80 per cent of wages for those currently unable to work had applications from 140,000 firms on its first day alone.
That is a lifeline for families all over Britain. But we would say this to the Chancellor: Be straight with the public over what all this will cost.
Too many think the Government can fund this bailout until the virus burns itself out or a vaccine arrives. It cannot.
And every penny will have to be paid back, over decades, by taxpayers.
Mr Sunak has warned of hardship ahead. Too few grasp just how hard it will be.
Economists predicted that today's help will cost around £4.2billion for three months of help.
Dan Tomlinson from the Resolution Foundation, said: "The sheer scale of applications for the Government’s Job Retention Scheme on its opening day shows just how badly the scheme is needed.
"Without firms having the option to furlough staff, Britain could be facing the prospect of totally unprecedented numbers of people being unemployed.
"The claims made today alone are set to cost at least £4.2 billion if staff are furloughed for three months."
How does the furlough scheme work?
ANY UK organisation with employees can apply, including businesses, charities, recruitment agencies and public authorities.
It's up to your place of work to apply to the scheme, meaning you won't need to contact the government yourself.
To access the scheme, your employer must comply with the following:
- Designate employees who cannot do their jobs due to the coronavirus measures put in place by the government
- Notify those employees of their new "furloughed" status
- Submit information to HMRC about furloughed employees to set up a system for reimbursement and about existing systems that will facilitate payments
To be furloughed, you must have been on a payroll on March 19.
Although furlough leave can be backdated to March 1, the portal your employer will use to register your furloughed status only launched today.
Consequently, you will not be paid until the end of this month.
Workers can ask previous employers to rehire and furlough them, even if they left for another job, but firms don't have to do this.
Meanwhile, the Chancellor also confirmed tonight that 140,000 gowns have arrived from Myanmar as ministers desperately try to stop needed PPE from running out.
Mr Sunak said: “This is an international challenge that many other countries are experiencing.
“Alongside the efforts of British businesses, and our embassies around the world, we are working hard to get the PPE our frontline NHS and social care staff need.”
He insisted there were regular shipments despite the “unexpected delays” to a consignment of PPE due to arrive today from Turkey.
“Today we unloaded a shipment of 140,000 gowns from Myanmar,” he said.
“We are, of course, continuing to pursue every possible option for PPE procurement.”
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The news came after the revelation that 11million people have been furloughed or made unemployed by coronavirus.
The shock figure means nearly a third of Britain’s workers have been hit.
After pressure from The Sun, he has opened the Job Retention Scheme that lets firms claim cash from the Government ten days earlier than planned.
Last week he announced he would extend the scheme until the end of June too, to give help for longer.
He will also make sure that no one can be made redundant until the programme ends.
The Resolution Foundation think tank calculates eight million will go on to the scheme, but 2million will lose their jobs.
Link between Liverpool cases and football match
SCIENTISTS tonight refused to rule out a link between the Liverpool-Atletico Madrid match in early March and the city's high coronavirus rate.
Deputy Chief Scientific Adviser Angela McLean called it “an interesting hypothesis” when she was quizzed on it this evening.
She added: "I think it’ll be very interesting to see in the future, when all the science is done, what relationship there is between the viruses that have circulated."
Spain is one of the worst affected countries in Europe, and some parts of Liverpool have some of the the worst rates of coronavirus outside London and the West Midlands.
Just eleven days after the match on March 12 at Anfield, Boris Johnson locked down Britain and ordered everyone to stay indoors.
Critics have said the match should never have taken place, as it may have helped spread the disease in and around the country.
Yesterday the Madrid Mayor admitted it was a "mistake" for it to go ahead, but ministers tonight insisted they made the right calls at the right time.
Other games around the time had been cancelled, but 3,000 fans still flew over from Spain to see it.
Travel from the UK to Spain was restricted the day after the match.
Mr Sunak has also unveiled a £1.25billion package for start-up firms not eligible for emergency business cash.
The Chancellor also revealed that 12,000 loans have been accepted to businesses to help them keep going throughout the country - double the number of the week before.
He said that some "operational tweaks" he had made would help, and he was "watching very carefully" to make sure the cash goes to where it is needed.
Yesterday The Sun reported that at least 22,000 firms are still waiting for a cash lifeline.
The British Business Bank, set up specifically to help small firms, has approved about 50 lenders who have had 28,460 loan applications since the lockdown began.
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