UK Government To Require Businesses Contribute To Furlough Scheme From July - Chancellor

MOSCOW (UrduPoint News / Sputnik - 03rd March, 2021) The United Kingdom's government will require businesses to pay contributions to the cost of paying their employees for the hours they have not worked due to the COVID-19 lockdown under the furlough scheme that will be extended until late September, UK Chancellor Rishi Sunak said on Wednesday.

Sunak has previously said that he would "do whatever it took" to protect jobs and businesses throughout the coronavirus disease pandemic.

"First, the furlough scheme will be extended until the end of September. For employees, there will be no change to the terms. They will continue to receive 80 percent of their salary for hours not worked until the scheme ends.

As business reopen, we will ask them to contribute alongside the taxpayer to the cost of paying their employees. Nothing will change until July, when we will ask for a small contribution of just 10 percent, and 20 percent in August and September,"� Sunak said in the parliament while presenting his budget statement.

The UK government launched the Coronavirus Job Retention Scheme one year ago during the first COVID-19 wave. Under the scheme, employers can apply for a grant to cover 80 percent of the salary of the employees that could not work due to the pandemic. The initiative was initially set to expire this coming April.