The Chancellor has ruled out a "cliff-edge" cut off to the Government's furlough scheme, introduced to pay the wages of some employees during the coronavirus pandemic.
The scheme was launched to help firms weather the pandemic by paying up to 80% of their salaries.
But the cost of the scheme so far has been £8 billion, reports WalesOnline, with 6.3 million workers receiving most of their pay from the Government.
That was a cost which was not 'sustainable' in the longer term, Chancellor Rishi Sunak told ITV News.
And he told the programme ministers were looking at ways to wind down the scheme - which is currently due to run to the end of June.
People would be eased back into work in a “measured way”, he said, adding: “To anyone anxious about this, I want to reassure that there will be no cliff-edge to the furlough scheme.
“I’m working as we speak to figure out the most effective way to wind down the scheme and ease people back into work in a measured way.
“As some scenarios have suggested, we are potentially spending as much on the furlough scheme as we do on the NHS for example.
“Clearly, that is not a sustainable situation which is why, as soon as the time is right, we want to get people back to work and the economy fired up again.”
According to the Liberal Democrats there should be a “tapered” end to the programme, with the Treasury paying 50% of salaries for the first month after people return to work, falling to 30% after the third month, with employers picking up the full bill after the fourth.
Sir Ed Davey, Acting leader, said: “The Government furlough scheme has done a good job at helping thousands of businesses through the lockdown, but the shadow of lockdown will be long, and the ‘new normal’ will be extremely challenging.
“Businesses and their staff need time to plan, and confidence the Government will be there, ready to support.”
