Added on: 14th May, 2020 by O1
The UK scheme to pay wages of workers on leave because of coronavirus will be extended to October, Chancellor Rishi Sunak has said.
The previously announced Coronavirus Job Retention Scheme (also referred to as the Furlough Scheme) will continue to operate in its current form until the end of July.
From 1st August, a couple of key changes are due to take effect
• Businesses will be expected to share the cost of the scheme. This means that furloughed employees will remain entitled to at least 80% of their usual wage (subject to the maximum limits), however the grant available from the government will be reduced. The level of reduction is currently unconfirmed.
• The scheme will become more flexible so that employees are able to return to work part time. Again, we await further details as to how this will operate in practice.
A quarter of the workforce, some 7.5 million people, are now covered by the scheme, which has cost £14bn a month. Its extension is no doubt welcome news for businesses and employees, who may have otherwise been considering unavoidable redundancies at the end of the scheme.
The change in flexibility will also be an important step in getting businesses up and running again following the easing of the lockdown.
The chancellor has confirmed that full details will be released by the end of May.
Check if you can claim your employees' wages through the scheme HERE