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UK chancellor announces extension of government furlough scheme until October

Chancellor Rishi Sunak.
Chancellor Rishi Sunak.

Rishi Sunak has announced an extension of the UK Government’s furlough scheme from June until October.

The UK chancellor said the job retention scheme, which was unveiled in the wake of the coronavirus lockdown, will continue for another four months.

The furlough initiate has allowed employers to keep staff on their payroll – paying them up to 80% of their wages. There is a monthly cap of £2500.

People have not been able to work while on the scheme.

However employees could return to work part-time under the changes announced on Tuesday.

Mr Sunak said the scheme will be unchanged until the end of July – after which it will continue with “greater flexibility to support the transition back to work”.

He added: “The job retention scheme will be extended, for four months, until the end of October.

“By that point, we will have provided eight months of support to British people and businesses. Until the end of July, there will be no changes to the scheme whatsoever.

“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.

“We will ask employers to start sharing, with the government, the costs of paying people’s salaries.

“Further detail will follow by the end of May but I want to assure people one thing won’t change: workers will, through the combined efforts of government and employers, continue to receive the same level of support as they do now, at 80% of their salary, up to £2,500.”

Speaking in the House of Commons, Mr Sunak added: “I’m extending the 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.”

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