On May 12 2020, the Chancellor announced that the government’s Coronavirus Job Retention Scheme will remain open until the end of October.
The Bank of England has stressed the scheme’s importance for economic recovery as it has continued to save many jobs and businesses from closing. Therefore, it has been granted the extension but with the flexibility that helps both businesses and the economy.
BCC Director General Adam Marshall has said:
“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.”
The government are rolling out an updated version of the scheme as we know it from August. Until the end of July, the scheme will remain the same.
This means that changes will be put in place that reflects the needs of UK businesses. Based on the results seen from those claiming under the scheme so far, the following changes will be made:
Return to work
Furloughed workers will be able to return to work as part of the scheme. This will be on a part-time basis.
Workers will continue to receive 80% of their salary, up to £2,500, as it was when the scheme was introduced.
Businesses will be asked to start sharing the cost of the scheme. This means that the employer will pay a percentage toward salaries to substitute payments made by the government.
The Job Retention scheme has successfully prevented many business closures. Now that it is evolving to let people go back to work, here are the figures from claims so far, released on 12th May 2020:
|Number of Jobs Furloughed||7.5 million|
|Number of Employers Furloughing||935,000|
|Total £ claimed||£10.1 billion|
Our team are here to offer advice and guidance when you need it. We have processed over 150 claims with a value of almost £600,000, so we know a thing or two about how the furlough scheme works. We are still available over the phone or by email, just visit our contact page for the details.
We regularly share updates on other funding and advice as we receive it. Visit our Covid-19 Resource Centre to find the latest tools and advice you can use to help your business. If you want to receive emails about updates to the page, just fill in the quick sign up form at the top of the page.
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