NIESR calls for furlough scheme to be kept open

The National Institute of Economic and Social Research (NIESR) has called for the government to keep the Coronavirus Job Retention Scheme (CJRS) open for longer.

Harrogate: 01423 524322 - mail@howardmatthews.co.uk :: Leeds: 0113 2862663 - darren@howardmatthews.co.uk

The National Institute of Economic and Social Research (NIESR) has called for the government to keep the Coronavirus Job Retention Scheme (CJRS) open for longer.

The CJRS is being wound down after helping support 11 million people through the crisis, and will come to an end in October.

The NIESR predicts that unemployment in the UK could rise to 10% of the workforce by the end of 2020. It is predicted to subsequently recede as the economic recovery gathers speed in 2021. According to the NIESR, the rate of unemployment would have stayed lower had the government extended the CJRS beyond the end of October.

In the Summer Economic Update, the Chancellor said furloughing had been the right measure to protect jobs through the first phase of the COVID-19 crisis and that it will be followed by a Job Retention Bonus. This will see UK employers receive a one-off payment of £1,000 for each furloughed employee who is still employed as of 31 January 2021. 

'The planned closure of the furlough scheme seems to be a mistake, motivated by an understandable desire to limit spending,' said Garry Young, Deputy Director at the NIESR.

'The scheme has been an undeniable success in terms of keeping furloughed employees attached to their jobs. The incentives offered to employers by the Job Retention Bonus look too small to be effective given the uncertainty about the economic outlook – a one-off payment of £1,000 per employee compared to an average wage of £530 per week.'

Xero - Certified Advisor Sage logo
About us

Established in 1985 we moved from Wetherby to Harrogate in 1995. Howard Matthews Partnership is now one of the leading firms in Harrogate and is highly respected in the business community.

Learn more

Latest news
Contact Details

Please call:
01423 524322

Howard Matthews Partnership, Queensgate House, 23 North Park Road, Harrogate, North Yorkshire HG1 5PD

Home | Contact us | Site map | Accessibility | Disclaimer | Help |

© 2020 Howard Matthews Partnership. All rights reserved. powered by totalSOLUTION
Harrogate Office : Howard Matthews Partnership, Queensgate House, 23 North Park Road, Harrogate, North Yorkshire HG1 5PD
Leeds Office : Howard Matthews Partnership, Lidgett House, 56 Lidgett Lane, Garforth, Leeds LS25 1LL

We use cookies on this website, you can find more information about cookies here.
ICAEW - The Institute of Chartered Accountants in England & Wales CIOT - Chartered Tax Advisors