By Furlough scheme extended to end of March
The furlough scheme will be extended until the end of March, the Chancellor confirmed today.
Rishi Sunak said the scheme will pay up to 80% of a person’s wage up to £2,500 a month.
He told the Commons that the government will review the policy in January.
The scheme was originally scheduled to end last month. It sees employees receive four-fifths of their current salary up to a maximum of £2,500 of hours not worked.
Addressing MPs in the Commons this afternoon (Thursday), Rishi Sunak announced a further extension into next year.
The chancellor told the Commons his intention was “to give businesses security through the winter”.
“The security we are providing will protect millions of jobs,” he added.
He said: “I know that people watching at home will have been frustrated by the changes the government has brought in during the past few weeks.
“I have had to make rapid adjustments to our economic plans as the spread of the virus has accelerated.”
Mr Sunak’s statement comes after the Bank of England said it was pumping an extra £150bn into the economy.
About £40bn has been spent on the furlough scheme since it was introduced in March.
About 9.6 million people have benefited at one time or another, with a steep take-up in the first few months.
However, some have questioned whether all the money has been wisely spent.
