Furlough wages scheme to be extended
THE coronavirus Job Retention (furlough) scheme is to be continued until October, the Chancellor has said.
Rishi Sunak, announced the extension to help firms while trading is still expected to be difficult for months to come.
The government will pay 80% of furloughed workers wages up to £2500, until July, then 60% with employers expected to pay 20% to ensure staff still receive 80% until October.
Ms Sunak said: “Employers currently using the scheme will be able to bring furloughed employees back part-time. And we will ask employers to start sharing with the Government the cost of paying people’s salaries.”
Nicola Sturgeon said she welcomed the extension but had still to see the detail of the plan.
She said: “I haven’t seen the full details yet but I certainly welcome that extension. We have to avoid cliff-edges”.
Business leaders welcomed the announcement
Glasgow Chamber of Commerce, chief executive, Stuart Patrick, said: “The Job Retention Scheme has been by far the the most effective business support measure during the COVID-19 crisis and we welcome the Chancellor’s announcement that it will continue in its current form till the end of July and in an amended form until October.
“Our focus is now on the adjustments that will be agreed for the scheme after July and we will be concerned that any business that is not allowed to reopen due to government instructions has full support until that time.”
Andrew McRae, of Federation of Small Businesses, said it “will give thousands of large and small Scottish employers the right sort of flexibility.
“Allowing operators to partially furlough staff while they consider how to get back up to speed should mean more businesses have the right tools at their disposal.”