The Chancellor of the Exchequer, Rishi Sunak, announced that the UK furlough scheme has been extended and will run for a further four months as outlined below:
- The Coronavirus Job Retention Scheme (CJRS) has been extended until the end of October 2020.
- From August to October the scheme will continue 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 with employers being asked to pay a percentage towards the salaries of their furloughed staff. The employer payments will substitute the contribution the government is currently making.
- Further detail will follow by the end of May, but the Chancellor reassured that workers will continue to receive the same level of support as they do now at 80% of salary up to £2,500 per employee, per month.
Chancellor Rishi Sunak said:
“Our Coronavirus Job Retention Scheme has protected millions of jobs and businesses across the UK during the outbreak – and I’ve been clear that I want to avoid a cliff edge and get people back to work in a measured way. This extension and the changes we are making to the scheme will give flexibility to businesses while protecting the livelihoods of the British people and our future economic prospects.”
According to the government, new statistics published on 12th May 2020 revealed the job retention scheme has protected 7.5 million workers and almost 1 million businesses.
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