22nd October 2020Chancellor’s revised measures: It’s a big ask for employers to fund a ‘redundant workforce’

Commenting on the revised measures announced by The Chancellor today, Simon Michaels, CEO of Business Solutions at accountancy firm HW Fisher said:

“This is clearly targeted at the most vulnerable businesses – hospitality, leisure and retail and of course any support is welcome. However will this be a sufficient incentive for businesses already struggling to retain staff? This is focussed on ‘viable jobs’ throughout this 6 month period, meaning an employee has to work a minimum 20% of their usual hours. A struggling SME will still have to pay the salary for time worked, and 5% for time not worked plus 100% of employers national insurance and pension. The big ask is, can SMEs that are struggling themselves afford to pay employees for the time that they are not working?”

“The Government are contributing, but employers are being asked to fund a ‘redundant workforce’ for some industries on the basis that this is a short-term economic blip!”