A wage subsidy fund would help reduce the amount of staff that SMEs are forced to cut due to the recession, according to the TUC and FSB.
The TUC and FSB have called on the government to subsidise up to 60% of a worker's wage by a combination of a specially set up fund and the job seekers allowance.
With unemployment figures in the UK steadily increasing - it currently stands at just under 2m - the TUC and FSB claim that the government could support over 600,000 employees a year at a cost of £1.3bn.
A number of European countries such as France, Italy, Spain and Germany have already set up such a fund to try and reduce the amount of staff that are laid off as firms seek to cut costs.
"Where they are needed, wage subsidy schemes provide a quick and effective way to cut costs for struggling businesses and vital financial help for hard-pressed employees," said Brendan Barber, TUC general secretary.
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1 comment:
but would business owners have enough imagination on how to keep them occupied? We already have a poor perfomrnace on innovation in this country and keeping people on with nothing to do would be shattering to morale
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