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Chancellor Extends Furlough Scheme Until October


The Chancellor Rishi Sunak announced today that the Government will extend the current Job Retention Scheme until the end of October.


The scheme currently pays wages of some 7.5 million furloughed workers in the UK and has been very successful thus far.  Where we have submitted the claims for our payroll clients in April, we have found the HMRC portal to be efficient and clients have been receiving the grants within the six days as promised.


 The key points announced today (12th May) are as follows:

  • Coronavirus Job Retention Scheme will continue until end of October 2020.
  • Furloughed workers across the UK will continue to receive 80% of their current salary, up to maximum of £2,500
  • New flexibility will be introduced from August to get employees back to work and boost the economy


The Government stated that as we reopen the economy, we need to support people to get back to work.


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 aim is to reduce the cost to the taxpayer of the subsidy, but the full details are yet to be worked out.


 The scheme will continue in its current form until the end of July and the changes to allow more flexibility will come in from the start of August.


More specific details and information around its implementation will be made available by the end of this month.  We will of course keep you updated.

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.








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