Relief as furlough scheme extended

Despite predictions that it might be cut back, the government’s job retention furlough scheme has instead been extended by four months.

The scheme, which is currently paying 80% of the wages (up to £2,500 a month) of 7.5 million people, a quarter of the UK workforce, will now run until October. It had been due to expire at the end of June.

Announcing the extension, chancellor Rishi Sunak said he expected employers to start sharing its costs. He also promised greater flexibility to support the transition back to work, saying that employers currently using the scheme will be able to bring furloughed employees back to work part-time.

TUC general secretary Frances O’Grady welcomed the announcement, describing it as “a relief to millions” and saying that it showed that the government had listened to unions.

She added that she was “pleased the job retention scheme will carry on till October, and that it will keep supporting at least 80% of wages.” It was right to enable short-time working too, she said, describing it as a “key to phasing in a safe return to work – unions have argued for this throughout.”

https://www.tuc.org.uk/blogs/union-win-covid-19-furlough-scheme-extended