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Coronavirus furlough scheme extended by four months

UK furlough scheme supporting over seven million workers has been extended for another four months, with amendments from August. 
Chancellor Rishi Sunak extends furloughs scheme supporting businesses with employee salaries until October (Picture: PA Media)

Chancellor Rishi Sunak announced earlier today that the Coronavirus Job Retention Scheme has been extended until October. However, he said there will be changes from August as he asks employers to share the burden of paying salaries. 

Going forward, employers currently using the scheme would be able to bring staff back from furloughing part-time. 

This follows Prime Minister’s announcement on Sunday revising lockdown restrictions and allowing people to return to work if they can’t work from home. This week, green spaces, garden centres, outdoor activity places including golf courses and some fast food chains re-opened with social distancing measures in place, which meant staff were brought back from furloughing. 

The Coronavirus Job Retention Scheme was announced in March, which allows businesses to retain and claim up to 80pc of wages for employees up to a maximum of £2,500 per employee per month.

Anyone furloughed will still be paid by their employer and pay taxes but will not be able to continue working for them for the duration of the furlough. 

With the new announcement, the Chancellor assured there would not be any reduction in the level of support in the furlough scheme. He insisted “the level of support that they receive will not be changed.” 

He confirmed that so far 7.5 million workers have been covered by the scheme and it would last for eight months by end of October.