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Furlough scheme extended

12 May 2020

Chancellor Rishi Sunak has announced that the Government’s furlough scheme will run until the end of October.

First launched in March, the furlough scheme was due to close at the end of next month.

Sunak said there would be no changes in the system, whereby the government pays 80 per cent of furloughed workers’ wages up to £2,500 per month, until the end of July. 

From August, the scheme will continue, but with greater flexibility for firms to bring staff back to work. Under the current scheme furloughed employees cannot work.

The chancellor also said that from August employers would need to “share with the government the cost of paying salaries.” 

ECA has issued guidance on the furlough scheme, which can be found at www.eca.co.uk/coronavirus.

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