In the Commons today, Chancellor Rishi Sunak, announced a Coronavirus Job Retention Scheme extension to the end of October. By that point, the Government will have provided eight months of support to British people and businesses. Businesses now have 7.5 million workers on the Coronavirus Job Retention Scheme, up from 6.3 million a week ago.
Through to the end of July there will be no change with the Government providing up up to 80% of an employees current salary capped at £2,500 per month.
From August to October the Coronavirus Job Retention Scheme extension will continue, for all sectors and regions of the UK, but with greater flexibility to support the transition back to work. Rishi Sunak rejected the suggestion that employees are becoming addicted to the scheme and his aim is support to get them back into work.
Employers using the Coronavirus Job Retention Scheme extension will be able to bring furloughed employees back part-time. Employers will be asked to start sharing, with the government, the costs of paying people’s salaries.
The Government is taking several steps to get people back to work and this will be the next measure, recognising that businesses may be able to open but not operate at full capacity. By allowing workers to come back part time and top up their salaries with the business paying for a proportion for the work available, it will avoid a cliff edge of simply yanking the scheme which would probably result in mass redundancies.
“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.”
– Rishi Sunak, Chancellor
