Sunak announces furlough scheme replacement. Is it any good?

After he served up this little howler – and pushed up Covid-19 infections massively, Rishi Sunak needs to make a good impression with his plan to replace the furlough scheme for jobs affected by Covid-19. Has he managed it?

Tory Chancellor Rishi Sunak has announced a new “job support scheme” to replace the “furlough” programme he has been running since lockdown began in March.

This new scheme will run for another six months until the end of April 2021.

What is it?

A six-month scheme starting on November 1.

To be eligible, employees must work a minimum of 33 per cent of their normal hours.

For the remaining hours not worked, the government and employer pay one-third of the wages each.

So employees working 33 per cent of their hours will receive at least 77 per cent of their pay.

Where will employers get the extra money?

According to BBC News:

Sunak announced a “pay as you grow” scheme for businesses which took government guaranteed loans during the crisis.

“Loans can now be extended from six to ten years nearly halving the average monthly repayment,” he said.

They can also move to interest only payments or suspend payments if they are “in real trouble” for up to six months.

He said no credit rating will be affected.

Coronavirus Business Interruption Loans will also be extended for up to 10 years.

There will also be a new loan scheme in January, the chancellor says.

He is also extending the scheme for self-employment on “similar terms” to the existing job support scheme.

The scheme is mainly for small and medium-sized firms. Only large firms that can prove they have been harmed by Covid will be eligible for the Job Support Scheme.

What about VAT?

Sunak is also cancelling the planned increase of VAT from five per cent to 20 per cent, which was due to come into effect in January.

Instead, the lower rate of five per cent will remain until 31 March next year.

Viable jobs?

Sunak said the new scheme is intended to support “viable” jobs only – and that should ring alarm bells:

Of course – Tories being Tories – certain extremely rich people are enjoying the continuation of their own subsidies at the same level:

Have YOU donated to my crowdfunding appeal, raising funds to fight false libel claims by TV celebrities who should know better? These court cases cost a lot of money so every penny will help ensure that wealth doesn’t beat justice.

Vox Political needs your help!
If you want to support this site
but don’t want to give your money to advertisers)
you can make a one-off donation here:

Donate Button with Credit Cards

Here are four ways to be sure you’re among the first to know what’s going on.

1) Register with us by clicking on ‘Subscribe’ (in the left margin). You can then receive notifications of every new article that is posted here.

2) Follow VP on Twitter @VoxPolitical

3) Like the Facebook page at

Join the Vox Political Facebook page.

4) You could even make Vox Political your homepage at

And do share with your family and friends – so they don’t miss out!

If you have appreciated this article, don’t forget to share it using the buttons at the bottom of this page. Politics is about everybody – so let’s try to get everybody involved!

Buy Vox Political books so we can continue
fighting for the facts.

The Livingstone Presumption is now available
in either print or eBook format here:

HWG PrintHWG eBook

Health Warning: Government! is now available
in either print or eBook format here:

HWG PrintHWG eBook

The first collection, Strong Words and Hard Times,
is still available in either print or eBook format here: