The government’s Coronavirus job retention scheme (CJRS) has been extended for a further four months until the end of October 2020, to assist businesses that are affected by the financial ramifications of the Covid-19 (Coronavirus) pandemic.
Rishi Sunak, Chancellor of the Exchequer, announced the decision in Parliament on 12 May 2020 and confirmed that there will be no financial changes made to the existing scheme until the end of July 2020.
Currently, the CJRS financially assists organisations that have had to furlough employees, by paying 80% of their wages up to a maximum of £2,500 per month.
The scheme will continue to be available to all business sectors in all regions of the UK, however, the government will begin to encourage the transition back to work, with greater flexibility from August 2020.
Businesses will be able to bring furloughed employees back part-time, paying a percentage towards salaries. More specific details of how this will work will be available from the end of May 2020.
7.5 million jobs have currently been furloughed, with one million businesses using this scheme.
Sunak said: “Further details will follow by the end of May but I want to assure people one thing won’t change: Workers will, through the combined efforts of government and employers, continue to receive the same level of support as they do now, at 80% of their salary, up to £2,500 a month.”
“I’m extending this scheme because I won’t give up on people that rely on it. We will stand by employees as we come through the other side.”