Chancellor extends furlough scheme to end of June
The governments unprecedented furlough scheme that is keeping millions of people in jobs will be extended for a further month, the Chancellor confirmed today.
Above:
Chancellor of the Exchequer, Rishi Sunak.
Courtesy HM Treasury
Following on from yesterday’s announcement to keep the social distancing measures in place, Rishi Sunak said the Coronavirus Job Retention Scheme (CJRS) would now be open until the end of June – providing businesses with the certainty they need.
The scheme, which allows firms to furlough employees with the government paying cash grants of 80% of their wages up to a maximum of £2,500, was originally open for three months and backdated from the 1 March to the end of May.
However, the Chancellor said he would keep the scheme under review and extend it if necessary.
Chancellor of the Exchequer, Rishi 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 yesterday, 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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The government has taken unprecedented action to help the economy and society bridge a period of national emergency so that as many people as possible can get back to work as the situation improves.
Future decisions on the scheme will take into account further developments on the wider measures to reduce the spread of coronavirus, as well as the responsible management of the public finances.
Commenting on the Chancellor’s decision to extend the Coronavirus Job Retention Scheme to the end of June, ADS Chief Executive Paul Everitt said: “Extending this important scheme allows employers to continue furloughing arrangements without having to confront difficult decisions on future staffing levels until after the next review of lockdown measures.
“This is a welcome announcement that protects jobs, limiting the impact of the crisis on workers and supporting the recovery that will be needed once the Government is able to begin to release restrictions on movement.”
Chief Executive of the Airport Operators Association Karen Dee said: “Airports are making significant use of the Job Retention Scheme, which has helped to address some of the challenges they are currently facing, so it is good news that the Chancellor has decided to extend it.
“Aviation’s recovery is likely to take longer than the wider UK economy as we rely on travel restrictions being removed across the world. We look forward to working with the Government as it becomes clearer how UK, European and global aviation will restart in the aftermath of the COVID-19 pandemic.”