Government's furlough scheme opens today as millions apply for financial support during coronavirus

Ellena Cruse20 April 2020

The furlough pay scheme for employees who are kept on the payroll despite not working due to Covid-19 opens for applications today.

The Coronavirus Job Retention scheme pays workers 80 per cent of their usual earnings, capped at £2,500 a month per person, meaning they will not be laid off from their place of work as businesses try to cope with the fallout from the pandemic.

Around 5,000 HMRC staff will operate the scheme with money paid within six working days. Phone and webchat operatives will be on hand to answer applicants questions, the Treasury said in a statement.

The scheme launched as the Government was warned that any delay in implementation would pose a huge economic cost for many companies.

The Coronavirus Job Retention scheme was originally intended to run until June 1 2020, however, it has been extended until at least the end of that month.

In a previous statement, Chancellor Rishi Sunak said: “Our unprecedented job retention scheme will protect millions of jobs across the country and is now up and running.

Chancellor of the Exchequer Rishi Sunak speaks at a news conference on the ongoing coronavirus outbreak
REUTERS

“It’s vital that our economy gets up and running again as soon as it’s safe – and this scheme will allow that to happen.”

British Chamber of Commerce Director General Adam Marshall said that, while the government deserves credit for its "speed, scale and flexibility" in responding to the challenge, any delay could threaten businesses.

“Our research indicates that two-thirds of firms have furloughed some portion of their workforce," he said.

"With April’s payday approaching, it is essential that the application process is smooth and that payments are made as soon as possible.

"Any delay would exacerbate the cash crisis many companies are facing and could threaten jobs and businesses.”

Many shops, restaurants, hotels and other service industries in the UK have found themselves with no customers after being forced to close amid the pandemic, and many other firms have had work cancelled.

Any UK organisation with employees can apply for the Government help as long as they had set up a payroll scheme before February 28.

This means that people who work for businesses, charities and public authorities will be entitled to the money if their employer signs up.

If you started your job after February 28, 2020, you are not eligible for the scheme.

If you were made redundant since February 28, you can be put on furlough if your employer rehires you.

Businesses will be able to pay their employees 80 per cent of their regular monthly wage however they are also free to top this up if they wish.

This means that if you earn £24,000 a year, you will earn a gross income of at least £1,600 a month on the furlough scheme.

While on furlough, wages will be subject to the usual income tax and other deductions. Workers will have exactly the same rights they did when working including statutory sick pay, maternity and other parental rights, the right against unfair dismissal and redundancy payments should you lose your job.

Listen to The Leader: Coronavirus Daily podcast

The Government say you may be at risk of losing your job if your employer asks you to go on furlough and you refuse.

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