Furlough scheme extended until October

Chancellor Rishi Sunak has announced that the furlough scheme will be extended by a further four months with workers continuing to receive 80 per cent of their current salary.

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 per cent of their salary, up to £2,500 a month.

So far, the job retention scheme has protected 7.5 million workers and almost one million businesses.

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.”

Neil Carberry, CEO of the Recruitment and Employment Confederation, said: “The Chancellor is right to extend the furlough scheme. This announcement recognises a point that the REC has raised repeatedly – the big jobs battle is against a longer-term unemployment crisis. A longer period of operation for the scheme, combined with the possibility of part-time furlough, is exactly the action that was needed.

“But both the current and future versions of CJRS need to serve temporary workers better. Government has been too slow to ensure agencies can furlough staff on the same low cost basis as other employers, soft-pedalling guidance on holiday pay and the level of reassurance required from clients that a temp will be able to return. Action is needed now on this – and the part-time furlough system will also have to work for temps as well as permanent staff. REC data shows that the majority of agencies have furloughed at least some of their agency staff, but the ongoing lack of clarity on these key issues has held others back.

“Government can rely on marshalling the private sector to help with the unemployment fight. Using the experts in the UK’s recruitment and staffing sector, working in partnership with JobCentres to advise jobseekers and find them new roles is a simple and effective step. We are ready to help”.