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Breaking News on Furlough

The BBC has revealed this morning that the UK scheme to pay the wages of workers on leave because of the coronavirus lockdown will be extended to October.

The Chancellor had said that the government backed workers and companies going into the lockdown, and would support them coming out, and has now confirmed that employees will continue to receive 80% of their monthly wages up to £2,500.

However, it has also been confirmed that the government will ask companies to begin to share the cost of the scheme from August.

The Chancellor has told parliament that from August the scheme will continue for all sectors and regions, but with greater flexibility to support the transition back to work. Employers currently using the scheme will be able to bring furloughed employees back part-time.

No doubt more detail will follow but Restart BTi believes many will find this announcement somewhat confusing in the light of the weekend’s suggestion that those who can, should return to work this week where it’s safe to do so. It is also likely that many businesses will be very concerned at the prospect of sharing the furlough burden whilst fighting to recover after the lockdown.

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