UK furlough scheme extended | by four months to end Oct 2020

The furlough scheme will be extended to October, Chancellor Rishi Sunak said today.

He confirmed that employees will continue to receive 80% of their monthly wages up to £2,500.

But he said the government will ask companies to “start sharing” the cost of the scheme from August (let’s see what that means) and that from August, the scheme would continue for all sectors and regions of the country but with greater flexibility to support the transition back to work.

Employers currently using the scheme will then be able to bring furloughed employees back part-time.

Mr Sunak said: “I’m extending the scheme because I won’t give up on the people who rely on it.

Rumours of the government winding down its contribution to the scheme from 80% of workers’ current salaries (up to £2,500) down to 60% proved unfounded. Instead, the government will wind down its contribution through a ‘return to work transition’.

From the start of August, furloughed workers will be able to return to work part-time with employers asked to pay a percentage towards the salaries of their furloughed staff. Sunak also confirmed that part-time working will only be permitted for employers “currently using” the scheme.

More specific details around the implementation of the new phase of the scheme will be made available by the end of May.