Chancellor of the Exchequer, Rishi Sunak

CHANCELLOR EXTENDS FURLOUGH SCHEME UNTIL OCTOBER – BUT IS THIS GOOD NEWS?

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In a boost to millions of jobs and businesses, Rishi Sunak has today (Tuesday) announced that the furlough scheme will be extended by a further 4 months with workers continuing to receive 80% of their current salary.

Whilst today’s news will be much-welcomed by many different employers and employees, it does indicate that the Government think some individuals could remain out of work or on reduced hours until the end of October.

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.

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Chancellor Rishi Sunak said:

“Our Coronavirus Job Retention Scheme has protected millions of jobs and businesses across the UK during the outbreak – and I’ve been clear that I want to avoid a cliff edge and get people back to work in a measured way.

“This extension and the changes we are making to the scheme will give flexibility to businesses while protecting the livelihoods of the British people and our future economic prospects”.

New statistics published today revealed the job retention scheme has protected 7.5 million workers and almost 1 million businesses.

The scheme will continue in its current form until the end of July and the changes to allow more flexibility will come in from the start of August. More specific details and information around its implementation will be made available by the end of this month.

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Mike Cherry, National Chairman of the Federation of Small Businesses, said:

“The Job Retention Scheme is a lifeline which has been hugely beneficial in helping small employers keep their staff in work, and it’s extension is welcome. Small employers have told us that part-time furloughing will help them recover from this crisis and it is welcome that new flexibility is announced today”.

BCC Director General Adam Marshall said:

The extension of the Job Retention Scheme will come as a huge help and a huge relief for businesses across the UK.

The Chancellor is once again listening to what we’ve been saying, and the changes planned will help businesses bring their people back to work through the introduction of a part-time furlough scheme. We will engage with the Treasury and HMRC on the detail to ensure that this gives companies the flexibility they need to reopen safely.

Over the coming months, the government should continue to listen to business and evolve the scheme in line with what’s happening on the ground. Further support may yet be needed for companies who are unable to operate for an extended period, or those who face reduced capacity or demand due to ongoing restrictions.

The views/opinions expressed in these comments are solely those of the author and do not represent those of Island Echo. House rules on commenting must be followed at all times.
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Jerrme

This will cost dear to all those working. Tax rises, national insurance and pension fees. It may be better if you are on social security unless you earn a lot, as they breed to get more cash, and have their council tax, rent, all paid.

Might be a blessing in disguise should you lose your job if in lowish pay employment.

Mr justice

This is just terrible news! This will bring about a new world alright! As reported by some news outlets, a world of very wealthy, and then the rest of us,struggling to keep a roof over our heads and feed the kids. Utter madness.

Steve

Yep nothing for free in this country

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