Furlough scheme extended as national lockdown returns

The prime minister has announced that England will go into national lockdown from Thursday, and has extended the furlough scheme which was due to have expired this past weekend.

The lockdown will see the closure of businesses including pubs, restaurants, gyms and non-essential shops until December 2.

For the original lockdown, the government introduced a furlough scheme which covered 80 per cent of the wages of employees unable to work because of the restrictions. The size of the contribution had been gradually declining and the scheme was set to end altogether on October 31, to be replaced by the Job Support Scheme.

But with coronavirus case numbers rising once more, Boris Johnson has tightened social restrictions and brought back the furlough scheme and its 80 per cent contributions - making it effectively more generous than it had been in recent weeks.

Adam Marshall, director general of the British Chambers of Commerce, said: "There’s no getting around the fact that these new restrictions will be a devastating blow to business communities who have done everything in their power to adapt and operate safely.

"Business and market confidence have been hit hard by the unclear, stop-start approach taken by governments across the UK over the past eight months, with little end in sight. Many firms are in a much weaker position now than at the start of the pandemic, making it far more challenging to survive extended closures or demand restrictions.

"The temporary extension of the furlough scheme will bring short-term relief to many firms. The full financial support package for businesses facing hardship, whether through loss of demand or closure, must immediately be clarified and communicated. Sustained help must be available to employers, to the self-employed and to the many businesses and individuals that have not been able to access any of the government’s schemes to date."

There were 23,254 new cases of coronavirus recorded on Sunday, 1,442 new hospital admissions and 162 related deaths.

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