UK’s furlough scheme gets four month extension

Coronavirus wage-subsidy scheme for workers extended to October but at a lesser rate from July

UK’s furlough scheme gets four month extension
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The UK government’s furlough scheme has been extended until October.

Changes will be made to the wage-subsidy scheme from July to “wean” workers and businesses off the programme.

From August the government will share the cost of the scheme with companies.

Related: UK’s independent garages adapt to current challenges with more now reopening

Chancellor, Rishi Sunak promised that employees would continue to get 80 per cent of their salaries, up to £2,500 a month.

It’s also been revealed that the government will allow businesses to bring some furloughed workers back to work on a part-time basis.

It’s reported that 7.5 million workers are now covered by the scheme, up from 6.3 million last week.

Chief executive of the Independent Garage Association, Stuart James said: “We welcome 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.”

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.

“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.”

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