Furlough scheme extended until October

UK borrowing soars amid Covid costs

Furlough scheme extended until October

Chancellor Rishi Sunak has now announced that the UK furlough scheme will be extended to October because of the coronavirus outbreak.

He said the government backed workers and companies going into the lockdown, and would support them coming out.

Mr Sunak confirmed that employees will continue to receive 80% of their monthly wages up to £2,500.

But he said the government will ask companies to “start sharing” the cost of the scheme from August onwards.

Mr Sunak rejected suggestions some people might get “addicted” to furlough if it was extended.

He added that the scheme has saved millions of jobs.

Some 7.5 million workers are now covered by the scheme, up from 6.3 million last week, he said.

The chancellor told the Commons that from August, the scheme would continue for all sectors and regions of the country but with greater flexibility to support the transition back to work, he said.

Employers currently using the scheme would be able to bring furloughed employees back part-time.

Public responses have varied considerably.

Some have voiced concern that people might take advantage of the scheme, and furlough staff while still providing services.

Others have expressed relief, expecting that the extension will prevent redundancies.

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