This blog discusses the Furlough Scheme extended announcement issued by HM Treasury today, confirming the extension to the Coronavirus Job Retention Scheme until the end of June. Read the full details of the “Furlough extension announcement” by HM Treasury.
Furlough Scheme extended by one month
As has been highlighted by this afternoon’s announcement, this topic is continuing to change and develop at an alarming pace. The news of the extension to the scheme comes just two days after a Treasury Direction stated that the scheme would only have effect “in relation to amounts of earnings paid or payable by employers to furloughed employees in respect of the period beginning on 1 March 2020 and ending on 31 May 2020…”
In light of the government’s announcement on 16 April that the social distancing measures and UK lockdown would continue for at least three weeks, on Friday, the Chancellor, Rishi Sunak, stated that “it is the right decision to extend the furlough scheme for a month to the end of June to provide clarity.”
However, whilst the Chancellor reassured that he will continue to monitor and review the scheme so that the UK economy can get “up and running again”, the extension of the scheme will only heighten the concerns of those worried about the long-term effect the scheme will have on the economy.
We will continue to monitor the situation, and ensure to update you with the latest information as it is released.
If you would like further information in relation to the Coronavirus Job Retention Scheme, please do contact a member of the Employment team.