Furlough Scheme extended and Part time working allowed

The furlough scheme has been extended to the end of October, but staff will be able to return to work part-time from August.

The changes to the Coronavirus Job Retention Scheme were announced in the House of Commons by chancellor Rishi Sunak earlier this week, after concerns were raised about the impact removing the support too early would have on jobs. Sunak said at least 7.5 million people in the UK had been furloughed, with around one million businesses supported.

He said: “We believe in the dignity of work and we are doing everything we can to protect people currently unable to work.

“And as we reopen the economy, we will need to support people back to work, and we will do so in a measured way.”

“I can announce today that the job retention scheme will be extended for four months until the end of October. By that point we will have provided eight months of support to British people and businesses.”

“Until the end of July there will be no changes whatsoever. Then from August to October, the scheme will continue for all sectors and regions of the UK, but with greater flexibility to support the transition back to work; employers currently using the scheme will be able to bring furloughed employees back part time.”

He said full details about the changes will be published by the end of May. The level of support will remain at 80% of furloughed workers’ salaries, but employers will be asked to share “the cost of paying people’s salaries” with the government.

This is of course welcome news for all small to medium enterprises and the ability to plan ahead with the gradual phasing out of the scheme allows businesses the opportunity to make informed decisions.

The provision of further information at the end of the month will surely assist Directors and Senior Managers with the making of these decisions.