The Coronavirus Job Retention Scheme (CJRS) has played an immense role in protecting jobs since the start of the pandemic. Therefore, MPs have pushed Chancellor Rishi Sunak to extend the Coronavirus Job Retention Scheme (CJRS) to help avoid mass redundancies.
The CJRS is set to be wound down in October and changes were implemented to reduce the amount paid by the government from August. So, from the first week of August, employers had to start paying national insurance and pension contributions. However, in September and October, government contributions will decrease to 70% and 60% respectively.
Experts have warned about a number of characteristics of the coronavirus pandemic indicating a rise in unemployment.
They believe unemployment is going to rise higher than it did at the time of the previous recession in 2008.
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Why did MPs urge for an extension in the Coronavirus Job Retention Scheme (CJRS)?
MPs recognised that the government faces ‘a daunting challenge’ in maintaining a balance between preventing a rise in unemployment but allowing labour market flexibility to enable workers to move from shrinking to growing sectors of the UK economy.
Commenting on the issue, former Chancellor Philip Hammond said:
‘There is always a tension with the desire to protect employment, so there will be tremendous political pressure in this recovery to not let people become unemployed and to not let companies fail.’
