The current scheme was to run until the end of June, but the change has been introduced to give extra support to companies who can’t get straight back to their usual level of business, because of the pandemic.
The essence of the scheme is the same, but the changes aim to give employers more flexibility – rather than stay at home, furloughed workers may now be brought back to work part-time. They will continue to receive 80% of their usual wage (up to £2,500), but employers will now be expected to pay a share of the costs from August.
“As we reopen the economy we will need to support people back to work,” the Chancellor told MPs.
Details of how much employers will have to pay are still being worked out, but there is speculation that the government’s contribution will reduce to 60%, from 80%.
The government are also exploring ways that furloughed workers could use their time for training or to learn new skills. Currently, furloughed employees are not allowed to undertake any training that could potentially profit the company they work for.
Mr Sunak concluded by telling the Commons: “Full details will follow by the end of May, but I want to assure people today of one thing that won’t change.
“Workers will through the combined efforts of Government and employers continue to receive the same level of overall support as they do now at 80% of their current salary up to £2,500 a month.
“I’m extending the scheme because I won’t give up on the people who rely on it.
“Our message today is simple: we stood behind Britain’s workers and businesses as we came into this crisis, and we will stand behind them as we come through the other side.”