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Rishi Sunak Announces Furlough Has Been Extended

Rishi Sunak Announces Furlough Has Been Extended

It was due to end on 31 October, but had already been extended to cover the ​second lockdown in England

Jess Hardiman

Jess Hardiman

Chancellor Rishi Sunak has announced the government is extending its furlough scheme until March.

Employees across the UK will receive 80 percent of their usual salary for hours not worked, up to £2,500 a month.

The scheme was due to end on 31 October, but had already been extended to cover the second lockdown, which came into effect today and is expected to last until 2 December.

However, until now the government had not revealed plans for furlough support after lockdown lifts.

Speaking in the House of Commons, Sunak said the government understood that 'people and businesses will want to know what comes next', acknowledging the 'uncertainty' many are facing right now.

He also said there was a 'need to give people and businesses security though the winter'.

He added: "Our highest priority remains the same: to protect jobs and livelihoods."

Announcing the extension, Sunak said: "The furlough scheme will not be extended for one month, it will be extended until the end of March."

While the furlough scheme was originally set to end in May, Sunak said at the outset that it would be extended 'if necessary'.

The news follows much debate across the UK about support for any businesses and individuals affected by the pandemic - whether this is during lockdown or for local areas placed into Tier 2 or 3 of the government's recently-implemented tier system.

PA

Before Greater Manchester was placed into Tier 3, Mayor Andy Burnham had campaigned furiously to secure more funding for the region.

Manchester's leaders initially asked for a itemised £75m package in order to support the local economy and to bring in a localised furlough scheme to avoid financial difficulties.

However, the government then offered Burnham and nine other local MPs a figure of £60m - despite local council leaders calculating the original amount based on population and other figures.

Burnham said he would have been willing to accept a compromise of £65m during negotiations, but eventually Manchester was forced into Tier 3 without a financial deal in place.

Featured Image Credit: PA

Topics: UK News, News