The UK’s furlough scheme is to be extended until September, the Chancellor Rishi Sunak will announce in Wednesday’s budget.
Officially called the Job Retention Scheme, the scheme has paid 80% of workers’ wages where they have been unable to work due to the pandemic. The scheme was launched in March 2020 and has been extended multiple times since then.
Mr Sunak is expected to announce that furloughed employees will continue to receive 80% of their current salary under the scheme, capped at £2,500 a month. From July, employers will be asked for a contribution of 10% towards the hours their staff do not work and in August and September, this contribution will increase to 20%.
The extension of the scheme, which is designed to keep viable jobs open for once pandemic restrictions ease, will likely be welcomed by many businesses and their employees. Some have though criticised the Chancellor for not announcing an extension to the scheme sooner.
The Chancellor is due to deliver the Budget speech in the House of Commons at around 12:33pm on Wednesday following Prime Minister’s Questions.