Calls by CIPD - the professional body for HR and people development - asking for the Chancellor of the Exchequer, Rishi Sunak to extend the Job Retention Scheme appeared to have been answered. The Chancellor has now announced an extension - until the end of October - of the furlough scheme currently subsidising the wages of millions.

Presently, at least 6.3 million people are having 80 per cent of their salaries - up to a ceiling of £2,500 - paid by the taxpayer under the furlough system, resulting in a cost of some £8 billion.

Until the end of July, there will be no charge to the employers but from then onwards the Chancellor plans to ask companies to share the cost of the scheme. From the start of August, furloughed workers will be able to return to work part-time with employers being asked to pay a percentage towards the salaries of their furloughed staff. The Chancellor has promised that there will be no 'cliff edge' as he winds down the scheme.  

Mervyn King - former Bank of England Governor - commented to the BBC:

"Keep it at 80 per cent. I don't think it makes sense to regard this as the major cost of the COVID-19 crisis in economic terms."

Matt Hanock - Health Secretary stated:

"We have said that shouldn't be a cliff-edge in the furlough scheme, but at the same time, we do need to try to get the economy back to something more like normal."

Angela Rayner - Deputy Labour leader - wants the scheme to continue at the same level, saying:

"We can't afford not to do it correctly. I think it is really important the Chancellor continues with the good practice of making sure that the furlough scheme is in place and doesn't try and reduce it too soon, because that will cost us in the longer term."

Mike Cherry - National Chairman of the Federation of Small Businesses - said:

“The Job Retention Scheme is a lifeline which has been hugely beneficial in helping small employers keep their staff in work and it’s extension is welcome. Small employers have told us that part-time furloughing will help them recover from this crisis and it is welcome that new flexibility is announced.”

Adam Marshall - BCC Director General - said:

“The extension of the Job Retention Scheme will come as a huge help and a huge relief for businesses across the UK. The Chancellor is once again listening to what we’ve been saying, and the changes planned will help businesses bring their people back to work through the introduction of a part-time furlough scheme. We will engage with the Treasury and HMRC on the detail to ensure that this gives companies the flexibility they need to reopen safely. Over the coming months, the government should continue to listen to business and evolve the scheme in line with what’s happening on the ground. Further support may yet be needed for companies who are unable to operate for an extended period, or those who face reduced capacity or demand due to ongoing restrictions.”