Workers and businesses across Torbay have been given a boost after the Government announced the current furlough scheme would be extended by a further four months, with workers continuing to receive 80% of their current salary.
New statistics published today (12th May 2020) revealed the job retention scheme has protected 7.5 million workers and almost 1 million businesses.
The decision to extend the scheme, which will continue to apply across all regions and sectors in the UK economy, comes after the government outlined its plan for the next phase of its response to the coronavirus outbreak.
The key announcements made by the Chancellor in the House of Commons were:
- The CJRS is extended for four months until the end of October, until the end of July no changes to the scheme whatsoever.
- From August to October the scheme will continue across all regions and sectors, but with flexibility to support a transition back to work. Employers currently using the scheme will be able to bring furloughed employees back part-time.
- The Government will ask employers to start sharing with government the costs of paying people’s salaries (After end of July).
- Further detail will follow before the end of this month (May). Workers will though through combined efforts of employers and government continue to receive same level of support, at 80% up to a maximum of £2,500.
Commenting, Torbay’s MP Kevin Foster said:
“The extension of the Coronavirus Job Retention Scheme is a boost for our whole bay. Many businesses, especially in our iconic tourism industry, have been hit hard by the restrictions necessary to defeat the threat coronavirus presents to our community.”
“This news gives certainty as to the future of this key support scheme which is helping save jobs and ensuring our bay’s economy will be ready to recover once the current threat has passed.”
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