HomePoliticsConservative PartyFurlough Scheme Confirmed To Be Scrapped By October Says Chancellor Rishi Sunak

Furlough Scheme Confirmed To Be Scrapped By October Says Chancellor Rishi Sunak

Chancellor Rishi Sunak officially confirmed that the government will stop providing businesses with financial assistance through the furlough scheme by October. The chancellor announced yesterday, that there will be a gradual removal of the government fund.

Chancellor Rishi Sunak officially confirmed that the government will stop providing businesses with financial assistance through the furlough scheme by October. The chancellor announced yesterday, that there will be a gradual removal of the government fund.

The furlough scheme was implemented by the government as a method of maintaining financial stability within the economy during the coronavirus pandemic. Businesses were given the chance to utilize the scheme in order to avoid multiple redundancies within their companies.

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The government had plans to initially scrap the grant by May, however were then pressured by the public and economical fragility to extend it. Rishi Sunak then detailed that the grant is to be extended only until October.

In a briefing yesterday, Mr Sunak confirmed that the government has planned to scrap the scheme by October, but to do this in a gradual manner. While acknowledging the great risk that might prevail due to the scrapping of the government’s financial assistance, Mr Sunak explained that the government plans to ease the financially dependent out of the scheme.

“The furlough scheme cannot continue indefinitely, we can’t protect every single job and every single business” said the chancellor.

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The chancellor provided a brief timeline which details how the government intends on gradually decreasing their financial assistance programme.

The scheme is permitted to function normally in June and July, in August taxpayers contributions to the fund are to remain at 18%, employers will be obligated to pay national insurance and employers pension contributions along with many other alterations that aim at easing those who are dependent on the scheme back into independence.

Alice Campbell for SurgeZirc UK
Alice Campbell for SurgeZirc UK
Alice Campbell is a highly skilled and experienced royal writer, currently working with SurgeZirc UK. With a passion for journalism and a keen interest in the royal family, Alice has established herself as a prominent figure in the field.
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