The governments furlough scheme that is keeping millions of people in jobs will be extended for a further month, the Chancellor has confirmed.
Following yesterdays announcement that social distancing measures will continue, Chancellor Rishi Sunak said that the Coronavirus Job Retention Scheme (CJRS) would be open until the end of June.
The Scheme allows firms to furlough employees with the government paying cash grants of 80% of wages up to a maximum of £2,500. It was originally open for three months, backdated from the 1st March until the end of May.
The Chancellor said it would be kept under review and extended where necessary.
Chancellor of the Exchequer, Rishi Sunak, said:
“We’ve taken unprecedented action to support jobs and businesses through this period of uncertainty, including the UK-wide Job Retention Scheme. With the extension of the coronavirus lockdown measures yesterday, it is the right decision to extend the furlough scheme for a month to the end of June to provide clarity.
“It is vital for people’s livelihoods that the UK economy gets up and running again when it is safe to do so, and I will continue to review the scheme so it is supporting our recovery.”
The government has taken action to help the economy and society bridge a period of national emergency so that as many people can get back into work as the situation improves.
This week the Office for Budgetary Responsibility said the CJRS is limiting the impact on employment. Brewdog and Timpsons are among the thousands of businesses up and down the country furloughing their staff.
Future decisions on the scheme will take into account further developments on the wider measures to reduce the spread of coronavirus, as well as the responsible management of the public finances.