The furlough scheme, part of the Coronavirus Job Retention Scheme, has been extended to October, Chancellor Rishi Sunak has announced.
Originally scheduled to end in June, the news will come as a huge relief for hospitality operators who were concerned about business survival if government support was to drop off.
Sunak, who is celebrating his 40th birthday today, explained how until the end of July there will be no changes, but detailed how there will be “greater flexibility” from then until the end of October.
This move is aimed at allowing firms to put employers back into work on a part-time basis, if needed.
But he says that “workers will continue to receive the same level of support”, at 80 per cent of their current salary. However he implies that some of this will come from businesses themselves.
This takes the furlough support scheme to eight months in total.
Sunak added that the government supported businesses and companies going into lockdown and will support them coming out.