Chancellor, Rishi Sunak has announced that the Governments’ Job Retention Scheme will remain open until the end of October.
To date the CJRS has kept 7.5 million workers employed, with almost 1 million businesses having taken advantage of the help available.
Key Points
- Coronavirus Job Retention Scheme will continue until end of October
- furloughed workers across UK will continue to receive 80% of their current salary, up to £2,500
- new flexibility will be introduced from August to get employees back to work and boost economy
There will be some changes to the way the scheme operates from the start of August allowing some flexibility for furloughed workers.
Furloughed workers will be able to return to work part time from the start of August with employers expected to pay a percentage towards the salaries of those furloughed.
Furloughed workers will continue to receive 80% of their salary, up to £2,500 per month with employer payments substituting the current Government contribution.
Caution
While there has been no formal announcement that the furlough contribution will be reduced, the Chancellor commented;
“There will be no change to the amount received for those already on the scheme”
– Rishi Sunak
Was this a warning that there are plans to reduce the contribution to the rumoured amount of 60%?
The Chancellor’s announcement accompanies Sundays updates from the PM, outlining the next phase in the Governments’ Coronavirus strategy.
We await further information on the pending changes to the furlough scheme, and will continue to bring you the updates. details should be announced by the end of May.
Click here to see how MJB Avanti can help you with furlough applications.
Source: 2020 Innovation