- Coronavirus Job Retention Scheme will continue until end of October
- Furloughed workers across UK will continue to receive 80% of their current salary, up to £2,500
- New flexibility will be introduced from August
The chancellor, Rishi Sunak has announced that the government’s Coronavirus Job Retention Scheme will be extended by a further four months until October with workers continuing to receive 80% of their current salary.
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.
Speaking about the announcement, Chancellor Rishi Sunak said: “Our Coronavirus Job Retention Scheme has protected millions of jobs and businesses across the UK during the outbreak – and I’ve been clear that I want to avoid a cliff edge and get people back to work in a measured way.”
New statistics published today [May 12] revealed the Coronavirus Job Retention Scheme has protected 7.5 million workers and almost one million businesses.
The scheme will continue in its current form until the end of July and the changes to allow more flexibility will start in August. More specific details and information around its implementation will be made available by the end of May.
The government will explore ways through which furloughed workers who wish to do additional training or learn new skills are supported during this period. It will also continue to work closely with the Devolved Administrations to ensure the scheme supports people across the Union.
The Chancellor’s decision to extend the scheme, which will continue to apply across all regions and sectors in the UK economy, comes after the government outlined its plan for the next phase of its response to the coronavirus outbreak.
The scheme is part of a package of support for the self-employed, loans and guarantees, tax deferrals and grants for small businesses.
To date, businesses have had £14 billion in loans and guarantees including 268,000 Bounce Back Loans worth £8.3 billion, 36,000 loans worth over £6 billion through the Coronavirus Business Interruption Loan Scheme, and £359 million through the Coronavirus Large Business Interruption Loan Scheme.
BMF welcomes new furlough plans
The Builders Merchants Federation (BMF) has welcomed the announcement of an extension to the Coronavirus Job Retention Scheme, which it believes will provide the building materials sector and construction in general with a more flexible programme for a structured return to work as site activity ramps up.
The Federation, has been actively pressing for a more flexible programme from the government, as a member of the Construction Leadership Council (CLC), which is co-ordinating the industry’s response to the COVID-19 crisis.
John Newcomb, chief executive officer of the BMF, said: “A survey of our members last week found almost 90% in favour of the job retention scheme continuing beyond the end of June, with furlough support continuing beyond the end of June, with a large majority (70%) favouring the phased withdrawal the Chancellor now plans.
“However, we would want to see flexibility in the way employees can be brought back into the workforce, with an element of part-time working allowed as part of the scheme and continued shielding permitted for vulnerable employees and those with caring responsibilities.
“As the industry returns, it is critical that safety has the highest priority. Our new branch operating guidelines are helping more and more merchants to trade safely and support builders and contractors as they return to site.”
