Government to pay 2/3 salary for businesses forced to lock down, Rishi Sunak announces

Scheme will start in November

Ministers have unveiled plans to pay the wages of workers in businesses forced to shut to help prevent the spread of Covid-19, following warnings the disease is out of control in parts of the country.

The Treasury will cover two-thirds of pay packets, up to a maximum of £2,100, in what will be seen as a continuation of the furlough scheme for some.

Grants of up £3,000 per month will also be available for businesses required to close during a local lockdown.

Further restrictions are expected to be announced across the north of England within days, including the possible closure of pubs, restaurants and other places where people mingle.

The salary payments will only be for those who work in business which have been legally required to close.

The chancellor Rishi Sunak said: “I have always said that we will do whatever is necessary to protect jobs and livelihoods as the situation evolves.

“(This announcement) will provide a safety net for businesses across the UK who are required to temporarily close their doors, giving them the right support at the right time.”

Under the plan employers will not be required to contribute towards wages and only asked to cover national insurance and  pension contributions. 

On Thursday education minister Gillian Keegan told the BBC’s Question Time programme that coronavirus cases were “getting out of control".

Ministers are braced for significant waves of job losses this winter as the furlough scheme, which has been paying the wages of millions of workers, comes to an end and the coronavirus crisis shows no signs of abating.

Last month Mr Sunak unveiled plans to pay part of the wages of staff brought back part-time, as long as the employer covered a significant proportion of the costs.

But he faced criticism for offering nothing for staff whose workplaces were still closed.