Andrew Pierce 6pm - 9pm
"The maths doesn't work in Chancellor's new job scheme"
24 September 2020, 16:47
LBC's senior reporter Matthew Thomspon explains why "the maths doesn't work" in Rishi Sunak's new scheme to protect jobs.
Chancellor Rishi Sunak has set out the details of his winter economic plan in a Downing Street press conference, with many journalists questioning him on the new Job Support Scheme.
This scheme will "support only viable jobs" and not jobs that continue to exist because the Government is subsidising the wages - this has been clarified as jobs where staff can work at least 33 per cent of their normal hours.
However, the Government's contribution to workers' pay will fall sharply to 22% under the new scheme. For the hours employees can't work, the government and the employer will each cover one third of the lost pay.
Starting from November, the scheme is due to run for six months.
LBC's senior reporter explains why the "maths doesn't work" and why, instead, employers may be incentivised to make workers redundant.