Chancellor Extends Furlough Scheme Until October

Yesterday, the Chancellor announced that the government’s Coronavirus Job Retention Scheme will remain open until the end of October.

He confirmed that:

  • The Coronavirus Job Retention Scheme will continue until the end of October
  • Furloughed workers across the UK will continue to receive 80% of their current salary, up to £2,500
  • New flexibility will be introduced from August to get employees back to work and boost the economy

The Government stated “as we reopen the economy, we need to support people to get back to work. From the start of August, furloughed workers will be able to return to work part-time with employers being asked to pay a percentage towards the salaries of their furloughed staff”.

The employer payments will reduce the contribution the government is currently making but will ensure that staff continue to receive 80% of their salary, up to £2,500 a month.

New statistics published yesterday revealed the job retention scheme has protected 7.5 million workers and almost 1 million businesses.

The scheme will continue in its current form until the end of July and the changes to allow more flexibility will come in from the start of August.

More specific details and information around its implementation will be made available by the end of this month when we will discover whether there are any additional reporting obligations associated with the additional flexibility.

The government will explore ways through which furloughed workers who wish to do additional training or learn new skills are supported during this period. It will also continue to work closely with the Devolved Administrations to ensure the scheme supports people across the Union.

The Chancellor’s decision to extend the scheme, which will continue to apply across all regions and sectors in the UK economy, comes after the government outlined its plan for the next phase of its response to the coronavirus outbreak.

We have made furlough claims which total close to £1 million on behalf of our clients. The claims and the supporting calculations have proven to be far more complicated than we had originally envisioned. If you need assistance in making the calculation, or making the claim, get in touch with your usual Jack Ross contact who will be more than happy to help.

We will keep you updated as further information becomes available, but meanwhile, we will continue to provide you with assistance with ongoing furlough scheme claims and queries.