The Government has extended its coronavirus Job Retention Scheme until October, revealing changes to make furloughing workers more flexible while also protecting businesses which rely on trade credit insurance.
As of August, furloughed workers will be able to return to work on a part-time basis, with their employers being asked to pay a percentage of their salaries. The payments will take the place of the Government’s contribution to ensure staff continue to receive 80% of their salaries up to a maximum of £2,500 a month.
Businesses with supply chains which rely on trade credit insurance and are having difficulties maintaining their cover due to Covid-19 will also be supported by the Government, according to Economic Secretary to the Treasury, John Glen.
“We are delighted that the Government has introduced a guarantee scheme for trade credit insurance. It is news that will be warmly welcomed by food and drink manufacturers of all sizes, and an intervention we have been calling on Government to introduce since lockdown first began.”
Ian Wright CBE, chief executive of the Food and Drink Federation, said: “We are delighted that the Government has introduced a guarantee scheme for trade credit insurance. It is news that will be warmly welcomed by food and drink manufacturers of all sizes, and an intervention we have been calling on Government to introduce since lockdown first began. We look forward to working with the Treasury on the details.”
The Association of Independent Meat Suppliers (AIMS) and its head of policy, Norman Bagley, who called on Government for changes to the scheme, said: “On the basis that 1st August, is 11 weeks away, will be making a request to him [The Chancellor] and the Secretary of State for Business, Energy and Industrial Strategy, Rt.Hon. Alok Sharma MP for them to consider earlier introduction into sectors of the economy including the meat industry where an immediate benefit could be gained for manufacturing as well as the economy.
“We are delighted that the Government have listened to calls from AIMS and others to step in to guarantee business to business transactions currently supported by trade credit insurance and which have been disrupted during the Covid-19 pandemic.
“Our work in respect to a fair deal for our members in terms of Business Interruption Insurance continues but today’s announcement is a great step in the right direction.”