The government’s Coronavirus Job Retention Scheme will remain open until the end of October, the Chancellor announced today (Tuesday 12 May 2020). With 50% of business in Herefordshire and Worcestershire utilising the furlough scheme to protect their business, this announcement will be welcomed across all business sizes and sectors. This is a huge policy win for businesses across the two counties. After weeks of relentless lobbying, the Chamber network is delighted to see the scheme not only extended, but also refined to include greater flexibility that will accommodate the gradual and phased return of ‘business as usual’ activity levels. The key points are outlined below:
- 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 to get employees back to work and boost economy
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.
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. This extension and the changes we are making to the scheme will give flexibility to businesses while protecting the livelihoods of the British people and our future economic prospects.”
Herefordshire & Worcestershire Chamber of Commerce CEO Sharon Smith said:
“This is a huge relief for businesses who were worrying about how they would continue beyond the end of June if the scheme was brought to an end. It also gives employees currently furloughed confidence that they may be able to return to their roles within the coming months.”
British Chambers of Commerce 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.”