This morning, the Chancellor, Rishi Sunak announced his ‘winter plan’ to support businesses over the coming months.

The Job Support Scheme will help employees on part-time hours as a consequence of Covid-19 disruption to businesses and the economy, replacing the furlough scheme at the end of October.

The Government and businesses together will continue to top up wages of workers who have not been able to return to the workplace full time. It will see workers get three quarters of their normal salaries for six months. The announcement comes after MPs and business organisations voiced concerns about mass job losses after furlough ends.

Nearly three million workers are currently on partial or full furlough leave, according to official figures. The Job Retention Scheme ends on 31 October.

Chancellor Rishi Sunak said:
‘The government will directly support the wages of people in work, giving businesses who face depressed demand the option of keeping employees in a job on shorter hours, rather than making them redundant.’

Commenting, Neil Leitch, chief executive of the Early Years Alliance, said: 

‘While we welcome the news that the government will be continuing to provide financial support to protect jobs once the Job Retention Scheme ends, it remains unclear how exactly this latest announcement will benefit the early years sector – and in particular, providers who currently receive early entitlement funding.

‘With many providers still feeling the impact of the last-minute government U-turn on the furlough scheme, it is absolutely vital that the Department for Education provides clarity on exactly how nurseries, pre-schools and childminders employing assistants are able to access this scheme now, and not weeks down the line.

‘With so many in the sector struggling to remain afloat as a result of low parental demand for places, the increased costs of operating safely during a pandemic, constant staff shortages as a result of a lack of testing availability, and of course, inadequate government funding rates, the next few months are going to be incredibly difficult for many providers.

‘As such, it is vital that the government steps up its support for the sector and ensures that providers can operate sustainably, both now and in the long term.’

Purnima Tanuku OBE, chief executive of National Day Nurseries Association (NDNA), said: ‘From our research with the childcare sector we know that the pandemic has had a devastating impact on providers and the workforce. We have continuously lobbied for more ongoing support and it is good news for everyone that employment schemes will continue beyond the end of the current furlough plans.

‘Given the announcements this week on further measures to control the virus and support businesses, we must see the Department for Education continue support to providers until the situation improves.  Given the impact that other funding decisions had on early years providers’ eligibility to the furlough scheme both providers and local authorities need clear guidance well before the scheme opens.

‘While loans are not ideal for providers who are worried about their sustainability, extending access and providing more time to repay them will provide more re-assurance to childcare businesses. We need to see the Chancellor go further and turn the business rates holiday for early education settings into a permanent exemption.

‘Childcare remains a vital part of any plans for economic recovery so providers experiencing lower demand and increased operating costs need support from the Government to remain viable. This will ensure that childcare places are available when parents need to work, enhance their skills or retrain. A plan for jobs needs a plan for childcare.’