The Government’s 80% wage pledge

[Dick Swiveller]

All businesses will still be needed post this virus issue hence why they are also offering VAT and rate holidays as well as wages assistance. If they didn't then very quickly the country would be out of control hence the reason for doing this.

Ultimately there is a price to pay however now is not the time for discussing that now is the time to react with assistance packages which is what is happening.

Agreed, but I am sure you will allow me a little self indulgence just 16 hours after being told that all of the facilities I support have to close for an indefinite period.

 

[Beach Hut]

Agreed, but I am sure you will allow me a little self indulgence just 16 hours after being told that all of the facilities I support have to close for an indefinite period.

Naturally you have an emotion of going into a totally unknown situation which will be stressful which I can totally understand however be assured you are not alone and also the UK Government understands this hence they are doing everything they can to assist businesses during this time.

The issue to me is more how quickly can these systems get set up to prevent business having to go to the wall and by acting decisively hopefully this will be prevented.

 

[giveusfalmerplease]

Best place for info, IMO: https://www.gov.uk/government/publi...-through-the-coronavirus-job-retention-scheme

Details are sketchy so far, but I’d be confident that the £2.5k refers to gross pay. The Chancellor referred to “just above median pay” - that’s gross.

Just about all of my employees are paid well in excess of £2.5k/month, so the benefit to us will be substantially lower than 80% (maybe 25%), but it’ll be a big help. Of course, it’s only payable if the staff member(s) don’t work (how will the Govt know??).

Providing CBILS is easy enough to access, and providing it’s not like trying to find loo roll (demand swamping supply, leading to massive delays) - this will be a more important factor in cash flow mgt for us.

The intentions are exceptional - whether they actually work will depend, as ever, on execution.

wow - im dont mean to be mean (no pun) but if your employee are earning 10k per month then they shouldnt need help (25% of 10 is 2.5k based on your comments)

 

[Diablo]

This Virus really has made everyone aware of the most important things in life including of course life itself. If we all pull together we will keep these things and when through it we can again do the less important things in life that we all enjoy . Holidays, eating out, the Pub, Football, etc etc.
I would have liked Government pay 100% of wages for anyone off work on up to 15k year but do feel they are making a pretty good job of trying to help everyone in trouble.

 

[Goldstone1976]

wow - im dont mean to be mean (no pun) but if your employee are earning 10k per month then they shouldnt need help (25% of 10 is 2.5k based on your comments)

It’s not the employee that needs help, it’s the business. I’m projecting a 50% decline in revenue (which is far less bad than many other industries). With that projection, I run out of cash in two months. This scheme would allow me to keep employed more people for a longer time, which is my understanding of exactly what the Chancellor wants me to do.

I will, in addition to this, be asking all staff to be taking a (hopefully temporary) 25% salary cut (as an initial measure - more may follow later, depending how long this lasts), as well as asking the Board to drop all fees, and the management team to take a 50% cut.

 

[giveusfalmerplease]

I do agree that its main benefit is for low-medium paid employees, rather than high earners. However, the scheme will probably allow me to keep employed (but temporarily not working) 4-6 employees. Should I make them redundant instead?

.if u have some cash float eg can pay them from the VAT you are presumably putting in the bank, and you think you will be back up to full strength again when we return to "normal", why wouldnt you keep them on? however, i guess it depends what industry u are in. there will be a glut of people wanting to go on holiday when this is over but i guess the shops who are now hiring more staff to keep up with demand will suddenly be empty when people realise they dont need any beans or pasta for 2 years!

 

[Beach Hut]

It’s not the employee that needs help, it’s the business. I’m projecting a 50% decline in revenue (which is far less bad than many other industries). With that projection, I run out of cash in two months. This scheme would allow me to keep employed more people for a longer time, which is my understanding of exactly what the Chancellor wants me to do.

I will, in addition to this, be asking all staff to be taking a (hopefully temporary) 25% salary cut (as an initial measure - more may follow later, depending how long this lasts), as well as asking the Board to drop all fees, and the management team to take a 50% cut.

Which is exactly what the Government expects if they will assist companies, some employer / employee responsibility as well about what is a reasonable salary to carry on living in a what will hopefully be a short period.

 

[giveusfalmerplease]

It’s not the employee that needs help, it’s the business. I’m projecting a 50% decline in revenue (which is far less bad than many other industries). With that projection, I run out of cash in two months. This scheme would allow me to keep employed more people for a longer time, which is my understanding of exactly what the Chancellor wants me to do.

I will, in addition to this, be asking all staff to be taking a (hopefully temporary) 25% salary cut (as an initial measure - more may follow later, depending how long this lasts), as well as asking the Board to drop all fees, and the management team to take a 50% cut.

i wouldn't want to be in your shoes but it sounds like you need to put yourself first. You dont say if these employees are actually working from home (in fact i dont know what your business is). If they are not doing anything couldnt you keep them on your books on unpaid holiday and just pay them the 2.5k? guess this might be one for lawyers to answer...anyway best of luck.

 

[DJ NOBO]

The payment is made to the business, not the employee. The employee remains on payroll (rather than being made redundant), and the employer claims back from HMRC up to £2.5k/mth.

I do agree that its main benefit is for low-medium paid employees, rather than high earners. However, the scheme will probably allow me to keep employed (but temporarily not working) 4-6 employees. Should I make them redundant instead?

No you shouldn’t, and I wish you well for your business.
There’s a moral line somewhere though. And if there are people normally earning 10k and have savings to match, I would hope they will consider giving a share of the 2.5k a month that they will receive while not working, to a suitable good cause.

 

[Baker lite]

The situation is changing by the hour, this is excellent work from our government, some will always say it’s not enough, in a constantly evolving situation I’m not sure the government could do anymore.

 

[NorthstandRacoon]

Fantastic news and a job saver for millions. Is there any information as to whether tax and NI will be deducted from the 80% payout? Is the limit of £2500 relating to gross or net wages?

I would have added this question to another thread but there doesn’t seem to be a relevant one that I can see.

As an aside, is this likely to save your job?

Re self employed. I guess any payouts will be calculated on the tax returns made. I know quite a few self employed people who do not declare anywhere near what they actually earn....

Yes, it's potentially saved my job. I'm still on the edge though! But yeah, it's made me feel a huge sense of pride in our great nation again. We aren't that bad, are we? This proves that when it comes to it, we are usually, a very well run country, despite the Brexit shit show etc.

 

[PILTDOWN MAN]

It’s not the employee that needs help, it’s the business. I’m projecting a 50% decline in revenue (which is far less bad than many other industries). With that projection, I run out of cash in two months. This scheme would allow me to keep employed more people for a longer time, which is my understanding of exactly what the Chancellor wants me to do.

I will, in addition to this, be asking all staff to be taking a (hopefully temporary) 25% salary cut (as an initial measure - more may follow later, depending how long this lasts), as well as asking the Board to drop all fees, and the management team to take a 50% cut.

Thing is government have to be seen to be reasonable setting the upper limit at what is considered the mean average is right. Those that earn more will have to cut their cloth accordingly. If they have an expensive lifestyle they'll have to curb it like the rest of us.

As a far as the business, unlimited funds through loans will be available interest free for 12 months. Again if the business can't afford the debt perhaps they have been paying too much to its workers!

As others have said I don't know what you do.

 

[Bodian]

It will be interesting to see how this works (if at all) for local authorities. We have a grant from government of around £5m, which is only around 50% of what we need to function. The other £5m we make through commercial things things like car parks, cafes, information centre shops, boat hire, events, and so on. All of this has collapsed. So, we're facing a £2-4m shortfall and won't be able to pay people? We're not a 'business' as such, so probably wouldn't qualify - but are reliant on business activity to function thanks to all the cuts.

 

[PILTDOWN MAN]

It will be interesting to see how this works (if at all) for local authorities. We have a grant from government of around £5m, which is only around 50% of what we need to function. The other £5m we make through commercial things things like car parks, cafes, information centre shops, boat hire, events, and so on. All of this has collapsed. So, we're facing a £2-4m shortfall and won't be able to pay people? We're not a 'business' as such, so probably wouldn't qualify - but are reliant on business activity to function thanks to all the cuts.

Similar to a lot of charities. While the business side such as paying staff will be dealt with it’s the end game that the funds are raised for is the issue whether it’s hospices or a donkey sanctuary

 

[Goldstone1976]

Thing is government have to be seen to be reasonable setting the upper limit at what is considered the mean average is right. Those that earn more will have to cut their cloth accordingly. If they have an expensive lifestyle they'll have to curb it like the rest of us.

As a far as the business, unlimited funds through loans will be available interest free for 12 months. Again if the business can't afford the debt perhaps they have been paying too much to its workers!

As others have said I don't know what you do.

Absolutely. I’m not complaining in any way - the Govt have made exceptional provision. It’s not their fault we have a pandemic on our hands. It’s not mine either. Or my staff’s.

I reckon we’ll muddle through if the staff agree to a temporary pay cut. If they don’t, I’ll be laying some off.

To your point about over-paying, we pay at the top of the second quartile, and attempt to recruit/retain upper quartile level people through interesting, valuable work and a decent attitude to work/life balance. We could pay median salaries, but I think productivity would plummet as we lost our best staff when they can get another job. In this market they’d stay put, but as soon as the market improved they’d be off.

I’m not looking for sympathy - it is what it is.

 

[Wrong-Direction]

Absolutely. I’m not complaining in any way - the Govt have made exceptional provision. It’s not their fault we have a pandemic on our hands. It’s not mine either. Or my staff’s.

I reckon we’ll muddle through if the staff agree to a temporary pay cut. If they don’t, I’ll be laying some off.

To your point about over-paying, we pay at the top of the second quartile, and attempt to recruit/retain upper quartile level people through interesting, valuable work and a decent attitude to work/life balance. We could pay median salaries, but I think productivity would plummet as we lost our best staff when they can get another job. In this market they’d stay put, but as soon as the market improved they’d be off.

I’m not looking for sympathy - it is what it is.

They've helped out the most wealthy and done **** all for the rest of us

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[Weststander]

The SNP's Ian Blackford SNP, no friend of Sassenach governments, was full of praise on Newsnight was full with praise for the measures. "A good day" said more than once, and he agreed with the presenter that this with now in effect a unity government with all parties, unions and business leaders.

That cut to clip of the ever scheming and miserable John McDonnell, where all he could muster was that this was in effect a 20% pay-cut for the (proletariat). Mr glass empty, very deliberately so.

Respect to the SNP.

 

[Weststander]

All businesses will still be needed post this virus issue hence why they are also offering VAT and rate holidays as well as wages assistance. If they didn't then very quickly the country would be out of control hence the reason for doing this.

Ultimately there is a price to pay however now is not the time for discussing that now is the time to react with assistance packages which is what is happening.

Plus corporation tax and self assessment income tax deferred, dirt cheap business loans and cash grants to the hospitality sector.

 

[Weststander]

They've helped out the most wealthy and done **** all for the rest of us

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The exact opposite - workers on up to £30,000 will receive between 80% and 100% of their normal pay, whether they're actually working or resting/exercising/carrying out the hobbies they always wanted to do.

Those on higher pay than £30k up to those on very big pay, are relying on employers for the element above £30k.


Are you referring to self employed trades people? Any word yet on what support you'll get?

 

[Wrong-Direction]

The exact opposite - workers on up to £30,000 will receive between 80% and 100% of their normal pay, whether they're actually working or resting/exercising/carrying out the hobbies they always wanted to do.

Those on higher pay than £30k up to those on very big pay, are relying on employers for the element above £30k.


Are you referring to self employed trades people? Any word yet on what support you'll get?

That's all great but I'm talking about the shelf stackers, delivery drivers, those on minimum wage, NHS staff, the key workers havent been given any extra for what they're doing and I very much doubt they will once this is all over. I just dont think it's fair that someone that currently doesn't have a key job can get at least 80% of their earnings whilst someone like me that's self employed can claim £94 a week sick pay, thanks but no thanks I'll take my chances and carry on working instead of going bankrupt

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