EXTENSION TO FURLOUGH SCHEME

By Nick Adamthwaite

This afternoon we saw Chancellor Rishi Sunak announce a four-month extension to the furlough scheme that has been in place since March. He confirmed that the scheme, introduced to help businesses across the country survive the pandemic without having today off the majority of staff, will continue until October.

This announcement will come as good news to a lot of employers, especially in those industries where activity has ground to a complete halt.

Along with the announcement of the extension until October, Sunak also confirmed that from the end of July, the scheme will bring in some measures to try and share the cost of the job retention scheme with the employer, rather than the cost being solely placed on the tax payer.

Do not worry though, the guarantee of 80% of eligible workers’ wages being paid up to a maximum of £2,500 will remain in place. The sharing of costs has not been fully covered yet, however it is likely to involve an element of workers returning to work, potentially on a part-time basis initially.

In total, 7.5 million have been furloughed under the scheme, a number that has so far come at a cost of billions of pounds for the government.

Sunak made the announcement in a quick response to a question in the commons. He stated “I’m extending the scheme because I won’t give up on the people who rely on it”.

“Our message today is simple: we stood behind Britain’s workers and businesses as we came into this crisis, and we will stand behind them as we come through the other side”.

As ever… if you’ve any questions about how your finances could be affected by this, or you just fancy having a no-obligation chat with one of our advisers, get in touch today.

#FinancialAdvice #FinancialPlanning #FurloughScheme #RishiSunak #Covid19

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