FURLOUGH TILL OCTOBER
THE furlough scheme will be extended until October – long after the economy is due to reopen.
In an attempt to protect incomes, Rishi Sunak also announced that grants for the self-employed would continue into the autumn.
However, employers will have to start to contribute to the furlough scheme - under which staff who are unable to work receive 80 per cent of their wages from the Government.
More than 11million jobs have been furloughed under the Coronavirus Job Retention Scheme, which had been due to close at the end of April. It will now continue until the end of September.
It has been credited with slowing the pace of job losses as tens of thousands of businesses remain shut. But it is estimated to cost £14billion per month.
Yesterday, the Chancellor announced a taper, which will require businesses to begin to contribute to the 80 per cent wages as they reopen.
He told MPs: ‘Nothing will change until July, when we will ask for a small contribution of just 10 per cent and 20 per cent in August and September.’
The extension was welcomed by Jonathan Lea, 31, who manages Loxleys Restaurant and Wine Bar in Stratfordupon-Avon Warwickshire. It employs more than 30 staff. Mr Lea is currently on furlough alongside his fiancee Juliette Barrios, 23, a supervisor at the restaurant.
‘The extension to the furlough scheme is fantastic for us,’ he said. ‘It has been an absolute godsend throughout this pandemic as it means we haven’t lost a staff member.’ Support for the self-employed will be expanded so that 600,000 more who were ineligible can now apply.
The next grant, from February to April, will pay 80 per cent of average trading profits up to £7,500, while the final grant, from May to the end of September, will be cut to 30 per cent for those whose turnover has fallen by less than 30 per cent.