I think many heard that the government would pay the remaining 2/3rds of an employee’s wages (I didn’t quite catch it either) but that’s not quite right- the 2/3rds will be covered by the Treasury AND employers. https://twitter.com/hmtreasury/status/1309085916678500355

“Government with employers” crucial bit, I think https://twitter.com/lewis_goodall/status/1309086162565451776?s=21 https://twitter.com/lewis_goodall/status/1309086162565451776

So in example cited in Treasury gfx, an employer working a third of their hours WOULD receive 77% of their wages. But 55% wld be covered by the employer and 22% by govt. That's much less than the two/thirds than cited in a few places, because it was a bit confusingly worded.

So person A works a third of their hours

Employer pays for that third

For the hours NOT worked

Employer pays a third

Govt pays a third

And govt support is capped at £697.92 a month

So whilst it's still a big intervention it's much less generous than furlough

Clearly Treasury needed to bring furlough costs down and stop subsidising lost jobs

But clearly this is considerably less generous- almost more like a big tax credit. Will rely on employees working a third of hours, many biz and industries (hosp/arts) not in that position.

Listening to the tone of the Chancellor’s statement and the considerable lessening of generosity on offer, my sense is that Treasury has concluded that unlike in March, there’s little end in sight, we’re in a new normal and given that many of the jobs in furlough are gone.