The Independent Garage Association (IGA) has welcomed the Chancellor’s update and extension to the furlough scheme, which will allow businesses to bring staff back to work on a part-time basis.
During an announcement earlier this week, Rishi Sunak confirmed that the job retention initiative has been extended until October.
He revealed that changes will be made to the wage-subsidy scheme from July to “wean” workers and businesses off the programme.
From August furloughed workers will be able to return to work part-time with employers being asked to pay towards their staff salaries.
The Chancellor promised that employees would continue to get 80 per cent of their salaries, up to £2,500 a month.
The government also said it is exploring how furloughed staff can do additional training or learn new skills during their time away from work.
The IGA wrote to Chancellor of the Exchequer, Rishi Sunak on 29 April, requesting a partial furlough scheme that would allow employees to return to work part-time to support businesses throughout their reopening.
Stuart James, chief executive of the IGA said: “We thank the Chancellor for listening to the IGA’s proposal to implement a flexible furlough scheme.
“As highlighted in our letter, many independent garages have suspended activity since the coronavirus crisis escalated due to the decrease in work volumes caused by lockdown restrictions and the MOT extension.
“This support from the government will help independent garages with a gradual, stable approach when reopening.”
Details about how much companies will have to contribute towards the salaries of staff that return part time are yet to be announced.
Around 7.5 million workers are now covered by the scheme, up from 6.3 million last week.
For further information about the IGA, select ‘more details’ below.
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