Chancellor Rishi Sunak anounces extension of UK furlough scheme

CHAMBERS of Commerce have welcomed the extension of the furlough scheme which pays the wages of workers on leave because of coronavirus.

Businesses largely welcomed the extension, with BCC saying the move would bring "significant relief" to employers and workers.

Chancellor Rishi Sunak confirmed that the scheme will be extended to October and that employees will continue to receive 80% of their monthly wages up to £2,500, but said the government will ask companies to "start sharing" the cost of the scheme from August.

Over a quarter of all workers, some 7.5-million people in total, are now covered by the scheme.

The chancellor said that from August, the scheme would continue for all sectors and regions of the country but with greater flexibility to support the transition back to work, he said.

Employers currently using the scheme will then be able to bring furloughed employees back part-time.

Mr Sunak said: "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."

He also rejected suggestions some people might get "addicted" to furlough if it was extended.

"Nobody who is on the furlough scheme wants to be on this scheme," the chancellor said. "People up and down this country believe in the dignity of their work, going to work, providing for their families, it's not their fault their business has been asked to close or asked to stay at home.