Furlough scheme to be extended to end of October - welcome news for local workers, say MLA and Retail NI

Chancellor Rishi Sunak yesterday confirmed that Coronavirus Job Retention Scheme will continue until end of October and that furloughed workers across the UK will continue to receive 80% of their current salary, up to £2,500 a month.

The Chancellor however said that from the start of August, furloughed workers will be able to return to work part-time with employers being asked to pay a percentage towards the salaries of their furloughed staff.

The employer payments will substitute the contribution the government is currently making, ensuring that staff continue to receive 80% of their salary, up to £2,500 a month.

He said: “Our Coronavirus Job Retention Scheme has protected millions of jobs and businesses across the UK during the outbreak – and I’ve been clear that I want to avoid a cliff edge and get people back to work in a measured way.

“This extension and the changes we are making to the scheme will give flexibility to businesses while protecting the livelihoods of the British people and our future economic prospects.”

New statistics published this week revealed that the job retention scheme has protected 7.5 million workers and almost 1 million businesses.

Welcoming the announcement, Foyle Sinn Féin MLA Karen Mullan said: “Given some sectors and businesses will have to be closed for longer than originally envisaged, it is important and appropriate that the support will be extended.

“That the scheme will be amended from August to allow for part-time working so those on reduced hours can be included in the scheme is also welcome.

“There is a need for the scheme to be flexible to support businesses to protect jobs and livelihoods, and the scheme must also allow for the inclusion of workers who had previously been missed out.

“It will also be important that self-employed workers who can’t go back to work are supported in the months ahead.”

Also welcoming the announcement by the Chancellor that the Furlough scheme will be extended, Retail NI Chief Executive Glyn Roberts said: “It will be a relief to many of our members and the wider business community that the Chancellor has extended the scheme. It is welcome that this revised plan allows for the introduction of a part-time furlough for workers.

“We hope that greater numbers of retailers will soon be able to re-open and move off this scheme as we make greater progress in reopening our local economy.”