Furlough scheme set to be extended to September (at reduced 60 percent rate)

[DreamChaser23]

www.telegraph.co.uk/business/2020/05/10/job-retention-scheme-set-extended-september/

An announcement is likely today or tomorrow.

Thoughts?

I think 60 percent is an impossible amount to live on. Not to mention not everyone can go back to work (i.e. no social distancing measures), (the business is still shut) A lot more people will still struggle month to month.

Knowing the Tories I wouldn't be surprised if month by month they reduce furlough from 60 to 40 then eventually getting rid of the scheme...

Its free money so whats the problem?

I grew up homeless. With one week we had 4 slices of bread to last us

I can cope with no money whatsoever. I don't want too. But I know I can.

@Mirrorxx Oh I know, I guess I am just venting. It’s so frustrating to think we may lose everything we have worked so hard for, for years, through absolutely no fault of our own. I know lots of others are on our position and worse though so should count my blessings.

Just released

The chancellor says 7.5 million jobs have been furloughed in the UK.

Mr Sunak announces the job retention scheme will be extended for four months until the end of October.

Until the end of July there will be no changes, but there will be "greater flexibility" from then until the end of October.

This will allow firms to put employers back into work on a part-time basis, if needed.

I believe he also said it would stay at 80% - though presumably that could change after July with whatever "greater flexibility" means

As said there may well be a few who genuinely still need it by the autumn, but what continues to worry me is the whole thing becoming an expectation rather than an emergency measure

I'm shielding and glad furlough can continue. I do worry I won't be employed in future though unless a vaccine is found.

Yes stats at 80%. Seems generous.

Rishi Sunak has confirmed that the furlough scheme will be extended until the end of October, a month longer than had been expected.

It will include "greater flexibility" in the later months the Chancellor has told MPs, allowing employees to bring furloughed employees back part-time.

But he says that "workers will continue to receive the same level of support", at 80 per cent of their current salary up to a £2,500 monthly cap. However he said this will be "shared" by businesses as staff get back to work.

Stays at..

In the Commons he apparently said furlough is staying at 80% extended to October but employers share the financial burden.

www.itv.com/news/2020-05-12/furlough-scheme-set-to-be-extended/

X-posted

Well, this is a turn-up for the books ... seems even the shadow chancellor's expressed concerns about the scheme becoming an addiction

It will be interesting to see what happens when it starts to cost employers as it has to stay at 80% but they contribute.

I think by august companies will be asked to pay more towards furlough also they might start looking at whether furlough is still practical for a business for a cafe it might be as not allowed to open for a kitchen fitting company it might no longer be quite so appropiate

That is a very important factor as many employers can afford the 20% subsidy but not more than that so when they are required to share more of the burden that is when they sack people.

I think we’ll see that yes, some don’t top up as it is so it has been an easy decision.

We often spent about 50% of our net salaries on housing costs (and with the first baby less but 50% on full time childcare! although then our wages as 2 full time professionals did rise). Many people spend a huge part of their wages on rent or mortgage so even if they are not paying for childcare because the nursery is closed (although dilemma if it opens on 1 June as some now can if you lose the place unless you send the child back...... but you are on furlough).....

Good news some relief at least but when he says sharing the cost from August I feel that is when he will expect employers to pay half and the state will pay half.

Thank god he found that magic money tree 👍🏻

Surely restaurants, gyms etc if still unable to open will just sack staff rather than pay them?

Surely restaurants, gyms etc if still unable to open will just sack staff rather than pay them?

They certainly might well do that especially to their cheaper staff to get rid of

No I thought the "sharing" of wages only applied where business was open and employee was working part time? For those who cannot go back to work as their sector is still closed, they will continue to get the 80% from gov I thought?

He did say he would elaborate on all the details by the end of this month so I guess there is a lot to iron out yet.

Bluebeck what’s the timing for closed sectors? I thought gradual reopening from July, depending. Then shared costs August.

I don't know - I guess nobody really knows until we get there, and it's all deemed safe enough etc.

Both my adult DC are furloughed and their workplaces are fashion retail and hospitality so they are not expecting to get called back soon.

We’re a transport business so there’s no way we can keep paying our drivers if tourist spots/ weddings/school trips are not happening anytime soon I don’t think the leisure and tourist industry has been considered in this light

For hospitality etc it is suitably vague

‘The next step could see some hospitality businesses and other public places reopen - "if the numbers support it" - but not earlier than 1 July.‘

I imagine they’ll tie in reducing furlough with gradual opening. It would be sensible to use it for that.