Furlough job scheme extended for another month to stop thousands being laid off
CHANCELLOR Rishi Sunak has extended the coronavirus job scheme for another month over fears thousands of workers would get redundancy notices from tomorrow.
The job retention scheme - which sees staff at firms furloughed but paid 80 per cent of their salaries - will now carry on into June, it was confirmed this afternoon.
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It was going to end on May 31, and without the security of the government backed cash many struggling companies would have to lay off staff.
Under current employment laws, companies have to issue 45 days notice before cutting roles - meaning letters could be sent to workers starting from tomorrow if the scheme ended.
Rishi Sunak said today he will expand the scheme for one more month, after First Secretary of State Dominic Raab announced an extension to the lockdown yesterday.
He said this afternoon: "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 extension will cost an extra £10bn - with the scheme already costing the taxpayer between £30bn and £40bn between March and the end of May.
It's thought the scheme will be reviewed each month from now on.
Earlier this week the scheme was extended - allowing up to 200,000 extra people to benefit by changing the cut off date to March 19.
How does the furlough scheme work?
ANY UK organisation with employees can apply, including businesses, charities, recruitment agencies and public authorities.
It’s up to your place of work to apply to the scheme, meaning you won’t need to contact the government yourself.
To access the scheme, your employer must comply with the following:
- Designate employees who cannot do their jobs due to the coronavirus measures put in place by the government
- Notify those employees of their new “furloughed” status
- Submit information to HMRC about furloughed employees to set up a system for reimbursement and about existing systems that will facilitate payments
To be furloughed, you must now have been on a payroll on March 19.
Workers can ask previous employers to rehire and furlough them, even if they left for another job, but firms don’t have to do this.
Confederation of British Industry head Carolyn Fairbairn said the Government needs to take action to protect staff saying earlier: "This is quite urgent."
This afternoon she welcomed the extension, adding: "Once again, the Government deserves credit for showing agility in the face of unprecedented challenges.’
“This extension means that firms will no longer be forced to issue redundancy notices over the next few to days to comply with 45-day consultation requirements, and can instead return to focusing on protecting jobs and their businesses.
“No firm wants the Scheme to last for longer than it needs to, but it’s absolutely clear that these vital support systems must stay in place until it’s safe for people to return to work and we can begin to restart and revive our economy.”
considering making job cuts now.”
Earlier No10 made it clear that anyone who was made redundant would not be forced out of their job while the scheme is still active.
A Downing Street spokesman said: "The Chancellor has said that the scheme is open for an initial three months but he will review extending it for longer if that is necessary."
He added: "If the Job Retention Scheme is extended, any negotiations that are under way would be paused and the furlough period of those employees would continue."
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During the consultation period, bosses will first talk to unions or staff representatives, before launching individual consultations with the staff who are likely to lose their jobs.
Thousands of employees up and down the country have been sent home by their employers, with the Government backing up to 80 per cent of salaries while they are unable to work because of coronavirus - up to a maximum of £2,500.
Companies who have already furloughed staff will expect to get their payments next week.
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Yesterday, we backed a proposal by Lord Ashcroft to honour our health heroes with the gallantry gong given for acts of bravery that did not take place in battle.
A No10 spokesman said: “The NHS is doing a fantastic job and the nation will want to find a way to say thank you when we have defeated this virus.”
SAS hero Andy McNab added: “The award of a George Cross would show an emotional appreciation.”
We are asking readers to sign the petition online at .
