Sunak hands firms a lifeline with furlough scheme extension

Author
Ian Mean
Director of Business West Gloucestershire | Vice Chair of GfirstLEP | Business West
12th May 2020

Chancellor Rishi Sunak gave many firms here in the South West another lifeline to survival today when he announced an extension of the government’s Coronavirus Job Retention Scheme.

He extended the scheme until October against all expectations that it would terminate in September.

Until the end of July there will be no changes to the scheme by which companies are paid 80% of furloughed employees wages up to £2,500 a month as long as they are kept on the payroll.

And then, from August to October, the scheme will in the Chancellor’s words “continue but with greater flexibility to support the transition back to work”.

A new facet of the scheme will allow employers operating it to bring back furloughed employees part-time but would be asked to share the cost of their salaries with government.

He promised further details by the end of this month.

The Chancellor, celebrating his 40th birthday, was sure-footed in the Commons as he said:

“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.

“We believe in the dignity of work and we are doing everything we can to protect people currently unable to work.”

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