Government extends furlough scheme

Chancellor Rishi Sunak has extended the Government’s furlough scheme until the end of October.

Addressing MPs in Parliament, Sunak said there will be no changes to the current scheme before the end of July.

He added that firms will be able to bring workers back in August, September and October with more flexibility.

He said: “We will ask employers to start sharing, with the Government, the costs of paying people’s salaries.”

Sunak said the job retention scheme had supported 7.5 million jobs, with almost one million businesses taking part.

He added that although the Government “believes in the dignity of work”, it is “doing all it can” to protect people who cannot work.

Scott Knowles, chief executive of East Midlands Chamber, said: “Businesses will welcome the further extension of the Coronavirus Job Retention Scheme beyond June, which will help eliminate some of the uncertainties that businesses and their employees are still facing.

“The potential to keep the scheme running to October, albeit with employers contributing, will help to aid the transition back to work, while allowing flexibility to bring people back into the workplace on a part-time basis, where it is safe to do so, is also something we’ve been campaigned for.

“The furlough scheme has seen the Government provide an unprecedented level of financial support to workers affected by the pandemic with the objective of protecting jobs and businesses, for which it should be applauded.

“However, such a huge financial commitment is not sustainable over the long-term, which is why the focus now needs to shift more towards safely restarting the economy as quickly as possible so businesses can start the process of building the UK’s economic recovery, which is the best – and most sustainable – way of securing people’s livelihoods.”