Chancellor Rishi Sunak has announced major updates to the Coronavirus Job Retention Scheme:
- Coronavirus Job Retention Scheme will continue until end of October
- Furloughed workers across the UK will continue to receive 80% of their current salary, up to a maximum cap of £2,500 per month
- New flexibility will be introduced from August to get employees back to work and boost the economy
With the aim to support millions of jobs and businesses across the UK, the Chancellor said the Furlough Scheme will be extended by a further four months with workers continuing to receive 80% of their current salary. Recently published statistics demonstrate how successful the scheme has been so far in protecting 7.5 million workers across nearly a million businesses.
As the economy slowly starts to reopen, the scheme rules will be amended to facilitate people going back to work following the outbreak of the COVID-19 pandemic. From the start of August, furloughed workers will be able to return to work part-time with employers being asked to pay a percentage towards the salaries of their furloughed staff. The employer payments will substitute the contribution the government is currently making, ensuring that staff continue to receive 80% of their salary, up to £2,500 a month.
The scheme will continue as it stands until the end of July, at which point, changes will be made to allow for further flexibility from the start of August. In addition to this, the government is looking into how furloughed workers wishing to complete additional training and acquire new skills can be supported during this period.
Further details relating to this can be found on the Government website with more updates being announced by the end of May.
To keep up to date on the latest news about how the coronavirus pandemic is impacting business and payroll then check our news section or sign up for our email newsletter.
