Chancellor to continue vital job furlough scheme until the end of October at 80 per cent of employee wages
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The UK government’s furlough scheme that helped save millions of jobs has been extended until the end of October, Chancellor Rishi Sunak has revealed.
There will only be minor changes which allow for some employers to bring staff back to work on a part-time basis between August and October.
Fears that the Chancellor would cap the government support at 60 per cent proved unfounded and it will remain at 80 per cent throughout the lifetime of the scheme.
The move is likely to be warmly welcomed across the country as many businesses and employers feared the impact of a further cut in support.
The key points of his announcement:
- Job furlough scheme to continue until the end of October
- Employees will receive the same 80 per cent level of wages up to £2500 a month
- The first change will be in August when employers can ask staff back part-time
Mr Sunak said: “We believe in the dignity of work and we are doing everything we can to protect people currently unable to work and today I can confirm the next stage of our jobs retention scheme.
“This scheme has been a world leading economic intervention, supporting livelihoods and protecting futures – 7.5 million jobs have been furloughed, jobs we could have lost if we had not acted.
“Nearly a million businesses supported it who could have closed shop for good and as we reopen the economy we will need to support people back to work, we will do so in a measured way.
“I can announce today that the job retention scheme will be extended for four months until the end of October, by that point we would have provided eight months of support to British people and businesses.
“Until the end of July there will be no changes whatsoever, then from August to October the scheme will continue for all sectors and regions of the UK but with greater flexibility to support the transition back to work.
“Employers currently using the scheme will be able to bring furloughed employees back part-time and we will ask employers to start sharing with the government the cost of paying people’s salaries.
“Full details will follow by the end of May but I want to ensure people today of one thing that won't change – workers will through the combined efforts of government and employers continue to receive the same level of overall support as they do now at 80 per cent of their current salary up to £2500 a month.
“I am extending this scheme because I won't give up on the people who rely on it, our message today is simple, we stood behind Britain's workers and businesses as we came into this crisis and we will stand behind them as we come through the other side.”
