Chancellor Extends Furlough Scheme

Government will continue to pay 80% of salaries (up to £2,500) until end June.

The UK Government's coronavirus furlough scheme has been extended by another month in the wake of the decision to extend lockdown by at least a further 3 weeks.


Chancellor Rishi Sunak said the scheme will now run until the end of June, rather than stopping at the end of May as originally planned. Mr Sunak said the 'unprecedented action' would stay in place in light of the continued social distancing measures.


The scheme, which allows firms to furlough employees with the government paying cash grants of 80 per cent of their wages up to a maximum of £2,500 a month, was originally open for three months and backdated from March 1 to the end of May.


Mr Sunak, said: 'We've taken unprecedented action to support jobs and businesses through this period of uncertainty, including the UK-wide Job Retention Scheme. With the extension of the coronavirus lockdown measures, it is the right decision to extend the furlough scheme for a month to the end of June to provide clarity.'


'It is vital for people's livelihoods that the UK economy gets up and running again when it is safe to do so, and I will continue to review the scheme so it is supporting our recovery.'


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