UK Companies Will Have to Cover Between 20-30% of Furloughed Wage Cost, Reports Suggest

Earlier in the week, the Associated Press reported that unemployment claims in Britain jumped by a record amount in April thus underscoring the destructive impact of the coronavirus pandemic on the country's economy despite the government's programmes to assist workers.

The Times has reported that authorities in the United Kingdom are eager to require employers to cover from 20 to 30 percent of furloughed employees' wages starting in August to aid the country's economic burden amid the pandemic.

"The Treasury has drawn up plans that would require employers to cover between 20 and 30 percent of people's wages. They would also be required to cover the cost of employer's national insurance contributions, on average 5 percent of wages", the outlet said.

Finance Minister Rishi Sunak is expected to announce the changes next week, according to The Times.

Commenting on the economic situation earlier this week, Mr Sunak stated that it would take time for the economy to get back to normal even when the government's coronavirus shutdown is lifted.

"It is not obvious that there will be an immediate bounce-back", he said.

UK-based corporations have gone on a job-slashing spree in recent weeks as companies are trying to deal with falling revenues caused by lockdown measures introduced to deal with the coronavirus pandemic.

According to the Bank of England's chief economist, more than half of the UK's 33-million-strong workforce are either temporarily laid off, unemployed, or working shorter hours thus causing the unemployment claims to jump to a record 69 percent in April.