Furlough scheme extended to October

THE Coronavirus Job Retention Scheme is to be extended until the end of October 2020.

Chancellor Rishi Sunak confirmed it would be continued for an extra four months on the basis that furloughed employees can be brought back part-time.

But Mr Sunak is expected to announce that firms will be asked to pay 20 per cent of the wages of employees on the scheme from August.

It is also anticipated that the scheme will be closed to new entrants from the end of June, and all employers currently on the scheme will be required to start paying.

The Government has made clear it wants to pare back the scheme amid concerns over spiralling costs. Figures released this week show it has already cost £15 billion.