Coronavirus Job Retention Scheme extended until October

Please note this article was published on 12th May 2020 and may be out of date. For the latest information about financial support around Coronavirus, please click here

The Coronavirus Job Retention Scheme will continue to apply across all regions and sectors in the UK economy until the end of October. Furloughed workers across the UK will continue to receive 80% of their current salary, up to £2,500.

The scheme will continue in its current form until the end of July. Changes to allow more flexibility will come in from the start of August. More specific details and information around implementation will be made available by the end of this month.

From the start of August, furloughed workers will be able to return to work part-time with employers being asked to pay a percentage towards the salaries of their furloughed staff. The employer payments will substitute the contribution the government is currently making, ensuring that staff continue to receive 80% of their salary, up to £2,500 a month.

Commenting on the Chancellor’s announcement today (12 May) that the Coronavirus Job Retention Scheme will be extended to October, BCC Director General Adam Marshall said:

 “The extension of the Job Retention Scheme will come as a huge help and a huge relief for businesses across the UK.

“The Chancellor is once again listening to what we’ve been saying, and the changes planned will help businesses bring their people back to work through the introduction of a part-time furlough scheme. We will engage with the Treasury and HMRC on the detail to ensure that this gives companies the flexibility they need to reopen safely.

“Our research shows that the scheme has become a key part of wider government support for businesses, with more than 70 per cent of firms surveyed furloughing a portion of their staff.

“Over the coming months, the government should continue to listen to business and evolve the scheme in line with what’s happening on the ground. Further support may yet be needed for companies who are unable to operate for an extended period, or those who face reduced capacity or demand due to ongoing restrictions.”