The UK government is taking unprecedented state intervention to protect jobs beyond the summer.
Chancellor Rishi Sunak announced today that the UK furlough scheme would be extended by four months until October. This means that more than 7.5 million workers will continue to receive up to 80% of their salary – a policy that has never been conceived by any government.
By increasing the furlough scheme, people who are unable to work will still receive their monthly salary – allowing them to continue with 80% of their income and pay for bills from electricity to rent without disruption.
The extension affects every sector of the economy to “support the transition back to work.”
With ongoing disruption to businesses, the pandemic has led to large layoffs and industries are struggling to weather the storm. From airlines to catering companies, the threat of redundancies is high, and therefore the government’s intervention today will buy more time – and give employers and employees breathing room over the next few months.