Chancellor Says Furlough Scheme Will Not Be Extended

Chancellor of the Exchequer Rishi Sunak has made a decision to cut the furlough scheme programme that has been supporting nearly 10 million workers during the COVID-19 crisis.

The coronavirus furlough scheme will be subsiding this month, with a complete termination set for October. Payrolls for furloughed workers will no longer be covered.

The furlough scheme has been a lifeline for workers who have lost jobs during the coronavirus pandemic, but the benefits will be lost in October, Insider reported.

The furlough scheme was initiated in an attempt to prevent the effects of job losses across the U.K. Opposers of the decision to end the scheme called to extend it for those in need to prevent widespread hardships for millions of jobless people.

The chancellor has refused the opposers’ pleas to extend the furlough scheme, according to the Mirror. So far the furlough scheme has cost the government £33.8 billion, and the chancellor has reported that the programme is not meant to go on forever. 

The chancellor admits the decision was not an easy one to make and the end of the furlough scheme might signal “difficult times ahead,” according to Sky News. 

Last week in a stopover in Glasglow, Sunak applauded the advantages the furlough scheme has given to workers in Scotland. However, there have been some apprehensions that the furlough scheme has weakened independence for some workers.

Opposers who wanted to continue to furlough scheme think the chancellor’s decision is a big mistake, especially for people who work in sectors that are still shut down.

Several industries are still fully closed, and those workers are still unable to return to work. Many argue the decision will affect those workers the most.

One sector that has been particularly hit is the entertainment industry.

Theatres are still not open for business. According to the chancellor, £1.5 billion was granted to the arts industry to help those workers during the coronavirus crisis. However, the furlough scheme will still not be extended for the theatre and arts industries, according to WhatsOnStage.

Ian Blackford, the Scottish National Party’s Westminster leader, is in disagreement with the chancellor’s decision, according to the Retail Gazette. He believes it is a mistake to pull support prematurely from people who need it and this will create an even bigger crisis. 

Other opposers predict a bleak forecast for the economy.

Labour leader Sir Keir Starmer reported that over 6,500 jobs were lost last week alone and the future may hold a job crisis bigger than any seen in many generations, the Retail Gazette reported. 

However, the chancellor aims to set measures in motion that increase apprenticeships and stimulate the restaurant industry. 

In an effort to supply some relief to workers in need, a job retention bonus in the amount of £1,000 will be given to all furloughed workers employed in January.

A new job retention bonus guidance outlining the details of the chancellor’s plan for jobs has been published by the government. After the furlough scheme ends on 31 October 2020, the job retention bonus will be implemented to provide some support. 

Employers will be able to provide the funds to employees who were qualified to receive the coronavirus job retention scheme. 

The details of the job retention bonus are distinctly described in the guidance: “The Job Retention Bonus is a one-off payment to employers of £1,000 for every employee who they previously claimed for under the scheme, and who remains continuously employed through to 31 January 2021. Eligible employees must earn at least £520 a month on average between the 1 November 2020 and 31 January 2021. Employers will be able to claim the Job Retention Bonus after they have filed PAYE for January and payments will be made to employers from February 2021.”

Are you concerned about the furlough scheme’s end this autumn? Let us know your opinion in the comments.

Read More Lawsuit & Settlement News:

New UK Law Ensures Furloughed Workers Will Receive Full Redundancy Pay

BOE Says COVID-19 Economic Slump Less Severe Than Expected; Bank Rate Steady

Northern Ireland Left Out of New UK Vehicle Emissions Rules

UK Ban On Prison Visits Takes Toll On Prisoners, May Violate Children’s Rights