Furlough scheme extended for UK workers

THE furlough scheme currently supporting 7.5 million jobs through the coronavirus crisis will be extended until the end of October, Chancellor Rishi Sunak has announced.

The scheme - which pays 80% of a worker’s salary up to a £2,500 monthly cap - will remain unchanged until the end of July and then continue with employers expected to start footing some of the multi-billion pound bill.

The Welsh Government had previously called for the scheme to continued.

Mr Sunak told MPs on Tuesday that from August there will be greater flexibility in order to allow furloughed staff to begin returning to work.

“Employers currently using the scheme will be able to bring furloughed employees back part-time,” he said.

“And we will ask employers to start sharing with the Government the cost of paying people’s salaries.”

Under the scheme - which has already cost the taxpayer £10bn - staff will continue to receive the current level of support through a combination of state and employer contributions.

Details will be announced at the end of the month following consultations with business, but officials have acknowledged the state will continue to make the largest contribution.

On Monday,

Economy Minister Ken Skates said he and Finance Minister Rebecca Evans had written to Mr Sunak asking for the furlough scheme to be extended to a second phase.

He told the Senedd’s economy, infrastructure and skills committee that the Welsh Government was arguing for the scheme to be extended for sectors, such as tourism, aviation and steel.

Mr Skates added: “It is absolutely vital we don’t go over a cliff edge at the end of June and that scheme progresses into a second phase.”