Medway Foodbank fears influx as furlough scheme winds down
12:13, 02 July 2021
updated: 12:15, 02 July 2021
One of the county's busiest foodbanks is preparing for an influx of needy people due to the government's furlough scheme being wound down.
Introduced following the first lockdown in March last year, the multi-billion pound initiative has seen the Treasury paying 80% of affected people's wages up to a maximum of £2,500 a month.
KMTV reports on the situation facing the foodbank
It is estimated around 11.5 million jobs have been supported throughout the life of the scheme, which will finally cease at the end of September.
However, from this week the government's contribution drops to 70% of salaries with employers having to pay 10%.
In August and September, it will be a 60% to 20% split.
Although Medway Foodbank's Lorraine Schulze has praised the government for introducing the financial backing, she feels it should continue for a while longer while companies get back on their feet.
She and colleagues worry the end of furlough will mean businesses being forced to cut back and let staff go.
They fear this will lead to an influx of new people needing to use the foodbank, which recently moved into bigger premises.
Another person who is worried for the immediate future is Katie Pickett, of Rainham's Pinkys Beauty.
She says her firm is facing a "triple whammy" of an end to furlough and the business rate holiday,
Bounce back loan repayments will also be due soon – at a time she feels the economy and people's disposal income haven't recovered sufficiently.
