Coronavirus: Targeted relief must remain ‘for those who need it’

The government’s coronavirus job retention scheme is expected to be extended until September at a reduced rate of 60% 

The furlough scheme, which currently covers 80% of the wages of laid off employees - this of course includes many private renters and landlords - up to £2,500 a month, will be reduced to 60%, and will also be available to top up the salary of staff brought back to work on a part-time basis. 

Changes to the job retention scheme could be announced by Rishi Sunak, the Chancellor, later today. 

But whatever is decided, the government must ensure that targeted relief for business and the self-employed, which also includes many private landlords and renters, remains in place, according to Blick Rothenberg. 

David Hough, a business advisory partner at the tax and advisory firm, said: “The government’s plan to rebuild that was published yesterday makes it clear that they will need to reduce economic support measures as people return to work.”

He continued: “On the face of it this is quite reasonable as it is simply not sustainable to maintain some of the support measures, at least on their current scale, for a significant period of time. But care needs to be taken to ensure that targeted relief remains available for those who need it.

“For example, workers in hospitality and some parts of the retail sector cannot yet return to work and whilst they might be able to generate some earnings by taking on other roles these will not necessarily generate a fair level of income whilst they are unable to return to their normal positions.

“Reducing access to the furlough scheme after the current end date of June is appropriate for some businesses but protection needs to be afforded for those who genuinely cannot yet return to work.”

Hough added: “There are those, who are expected to return to work if they cannot work from home but who live with vulnerable people, for example an elderly relative or someone with an underlying medical condition.

“Circumstances like these are difficult to navigate but targeted income support for these individuals would allow the existing measures to be tapered down whilst continuing to protect those who most need it.”

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