Yes. It’s true. Rishi Sunak, announced merely hours ago that the Coronavirus Job Retention Scheme (aka Furlough) will be extended until October 2020 with possible extension if needed.
The scheme was originally set to come to an end in July, however with this new extension there will be new measures in place. Until then, there will be no changes to the scheme whatsoever. From the end of July there will be measures to ensure the cost of the job retention scheme is shared more with employers but workers will continue to receive 80% of their current salary, up to £2,500. The Prime Minister, Boris Johnson, announced that employees who cannot work from home, are now permitted to return to work. With more and more people going back to work so soon, the government would like to start the process of easing their costs. Sunak pointed out last week that the furlough scheme was costing taxpayers nearly as much as the NHS. Therefore, from August to October, the scheme will continue for all sectors and UK regions but employers will also be able to bring furloughed employees back part-time while sharing the cost. For example, an employee can work two days paid for by their employer, and the remaining days will be covered by the job retention scheme, capped at 80%. There is hope that this will ensure job retention for millions of employees and be easier on the economy.
Why has furlough been extended? In the words of Sunak “I won’t give up on the people who rely on it… Our message today is simple: we stood behind Britain’s workers and businesses as we came into this crisis, and we will stand behind them as we come through the other side.” In the Commons Sunak seemed to have taken MPs by surprise by the scale of his announcement. MPs from all sides have welcomed his decision, and opposition MPs are finding it hard to ask the usual “But why aren’t you doing X as well?” follow-ups. Do you think these new updates will help your business excel through the rest of the year?
Our plan is to help as many businesses through this period as possible so that they come out of the other side thriving. We are aware that other companies are charging. As long as the process is, our investment to our clients is that we will continue to furlough any of our clients staff at OUR cost so not one of our clients will receive an additional expense for furloughing during this time. You needn’t worry about another expense during this crisis.
If you have any questions, feel free to contact us on 02085300720 or email enquiries@nordens.co.uk
