Furlough scheme extended to help 200,000 extra workers get 80% of wages paid
THE furlough scheme has today been extended to help another 200,000 workers get paid during the coronavirus crisis.
The government's coronavirus job retention scheme covers 80 per cent of the wages of furloughed workers, up to a maximum of £2,500 per month.
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It's supporting people who aren't working but kept on payroll - for example, if your employer has been forced to close temporarily due to coronavirus.
Announced by Chancellor Rishi Sunak last month, individuals originally had to be employed on February 28 to qualify.
But today, the government announced it's extended the scheme to March 19 - the day before it was first announced.
This means that bosses can now claim for furloughed workers that were employed on their payroll on or before this date.
It also gives workers who were starting new jobs which have been delayed or cancelled a chance to apply for help from their previous or new employer.
The government expects the extension to benefit 200,000 Brits who've previously missed out.
Any employer in the country – small or large, charitable or non-profit - is eligible for the scheme, and the payment will be backdated to March 1.
It's open for a period of up to three months, but businesses are calling for this to be extended.
How does the furlough scheme work?
ANY UK organisation with employees can apply, including businesses, charities, recruitment agencies and public authorities.
It's up to your place of work to apply to the scheme, meaning you won't need to contact the government yourself.
To access the scheme, your employer must comply with the following:
- Designate employees who cannot do their jobs due to the coronavirus measures put in place by the government
- Notify those employees of their new "furloughed" status
- Submit information to HMRC about furloughed employees to set up a system for reimbursement and about existing systems that will facilitate payments
To be furloughed, you must now have been on a payroll on March 19.
Workers can ask previous employers to rehire and furlough them, even if they left for another job, but firms don't have to do this.
It's up to your place of work to apply to the scheme, meaning you won't need to contact the government yourself.
Yesterday, Mr Sunak said the government is "on track" to open the system for furlough payments on April 20, with payments set to be paid before the end of the month.
Some employers may choose to pay staff now and then claim the money back from the government, but they don't have to do this.
Your company can also top up the remaining money so you receive 100 per cent of your salary, but plenty have chosen not to.
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Earlier this month, Martin Lewis persuaded the government to allow firms to rehire and furlough staff who left for jobs that then fell through.
Meanwhile, one in three UK companies have furloughed between 75 per cent and 100 per cent of their staff due to the coronavirus crisis.
Read our need-to-know guide to how furlough works.