An Alternative to Redundancy (ATR) initiative should be open to help business insurance holders avoid adding to the UK's unemployment problem.
The Confederation of British Industry (CBI) explained that the scheme would allow help business insurance customers to place workers on it for up to six months, with them receiving pay worth twice the rate of jobseekers allowance.
Half of this pay is contributed by the insurance holder, meaning it does not add any extra costs onto government expenditure, while the firm is able to retain skills during the current drop in demand.
John Cridland, CBI deputy director general, comments: "Businesses still face a long convalescence and the dole queues will continue to grow. The Alternative to Redundancy scheme could save jobs by giving businesses more leeway as the economy recovers."
However, Trades Union Congress general secretary Brendan Barber suggested there are problems with the details of the ATR scheme, such as whether employees will lose their redundancy rights, and said that wage subsidies could be a better way to tackle UK unemployment.
