Furlough scheme will end in October, chancellor confirms
Rishi Sunak has said that many will say the furlough scheme should always be extended but in his view, that is “just as irresponsible as it would have been, back in June, to end the scheme overnight”.
He added: “The longer people are on furlough the more likely it is their skills will fade and they will find it harder to get a new job.
“The furlough will wind down, flexibly and gradually, supporting businesses and people through to October.”
It was also confirmed that businesses would receive a bonus for every employee brought back from furlough.
If employers bring people back from furlough and continue to employ them to January they will be given a £1,000 bonus per employee, Sunak says.
The employee must be paid at least £520 in each month from November to January.
The bonus will be paid for all employees – so if all 9 million people are brought back, £9bn will be spent on the policy.
“Our message to business is clear: if you stand by your workers, we will stand by you,” he adds.