Home breadcru News breadcru Announcement breadcru UK Chancellor extends furlough scheme for a month

UK Chancellor extends furlough scheme for a month

20 Apr '20
2 min read
Pic: Shutterstock
Pic: Shutterstock

The UK Chancellor, Rishi Sunak, has extended the Coronavirus Job Retention Scheme (CJRS) scheme, which is keeping millions of people in jobs, till June 2020. The furloughed employees, who can be either UK or foreign nationals, must have been on their employer’s PAYE payroll on February 28, 2020, and can be on any type of employment contract.


The scheme, which allows firms to furlough employees with the government paying cash grants of 80 per cent of their wages up to a maximum of £2,500, was originally open for three months and backdated from the March 1 to the end of May 2020. However, the Chancellor said he would keep the scheme under review and extend it if necessary, according to a press release by HM Treasury.

“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,” Sunak said.

“The government has taken unprecedented action to help the economy and society bridge a period of national emergency so that as many people as possible can get back to 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,” he added.

ALCHEMPro News Desk (GK)

Get Free Weekly Market Insights Newsletter

Receive daily prices and market insights straight to your inbox. Subscribe to AlchemPro Weekly!