The government has extended its Coronavirus Job Retention Scheme by a month to the end of June.
The scheme, which allows companies to furlough staff and have 80% of their wages covered up to £2,500 a month, was initially introduced to cover the period from March 1 to the end of May.
In a statement, the government said the scheme had been extended by a month to reflect the extension of social distancing measures, and confirmed further extensions could be made.
The news will come as a relief for many companies in the travel industry that have taken advantage of the scheme. However, some firms have said furloughing staff causes operational difficulties as they are still needed to fulfil duties such as assisting and rebooking clients.
Chancellor Rishi Sunak said: “We’ve taken unprecedented action to support jobs and businesses through this period of uncertainty, including the UK-wide Job Retention Scheme.
“With the extension of the coronavirus lockdown measures yesterday, it is the right decision to extend the furlough scheme for a month to the end of June to provide clarity.
“It is vital for people’s livelihoods that the UK economy gets up and running again when it is safe to do so, and I will continue to review the scheme so it is supporting our recovery.”
