The Government’s Coronavirus Job Retention Scheme (CJRS) has today (12 May) been extended until the end of October reports commercial property agent Prop-Search, in a boost to millions of jobs and businesses.
The current scheme enables businesses to reclaim up to 80 per cent of furloughed employees’ salaries and was scheduled to finish at the end of June 2020.
Addressing the House of Commons, Chancellor Rishi Sunak said: “Our Coronavirus Job Retention Scheme has protected millions of jobs and businesses across the UK during the outbreak - and I’ve been clear that I want to avoid a cliff edge and get people back to work in a measured way.”
“This extension and the changes we are making to the scheme will give flexibility to businesses while protecting the livelihoods of the British people and our future economic prospects.”
He confirmed that those on the scheme have the reassurance that the level of support will not be changed - furloughed employees will still get 80 per cent of their salary up to £2,500 a month. However, from August to October, the scheme will include greater flexibility, allowing employees to bring furloughed employees back part-time, with employers paying a percentage towards to the salaries.
Simon Toseland, a Director of Prop-Search, added: “New statistics published today revealed the ‘furlough’ scheme has protected some 7.5 million workers and almost 1 million businesses. The Chancellor’s 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 pandemic.”
The scheme is just one part of the Government’s response to Covid-19 including an package for the self-employed, loans and guarantees that have so far provided billions of pounds in support, tax deferrals and grants for small businesses.
Today the Government has also published new statistics that show businesses have benefitted from over £14 billion in loans and guarantees to support their cashflow during the crisis. This includes 268,000 Bounce Back Loans worth £8.3 billion, 36,000 loans worth over £6 billion through the Coronavirus Business Interruption Loan Scheme, and £359 million through the Coronavirus Large Business Interruption Loan Scheme.