Government extends furlough leave by four months

The Government has today (Tuesday 12 May 2020) announced that furlough leave, part of the Coronavirus Job Retention Scheme (JRS), will be extended to October.

The Chancellor Rishi Sunak confirmed that employees will continue to receive 80 per cent of their monthly wages up to £2,500. From August, however, and in a bid to support the transition back to work, employers using the scheme would be able to bring furloughed employees back part-time.

Further details will be published at the end of May.

At present, some 7.5 million workers are covered by the scheme, up from 6.3 million last week.

About the Coronavirus Job Retention Scheme

  • Through the JRS the Government will reimburse employers for 80% of the wages, up to £2,500 a month, plus the associated Employer National Insurance contributions and pension contributions, of any employees that they pay through the pay as you earn (PAYE) system if those employees are temporarily not working i.e. on ‘furlough leave’. The amount paid is up to a maximum of £2,500.
  • HMRC has provided a step by step application guide explaining the information that employers need to provide to make a claim through the JRS, as well as the processes involved.
  • Businesses would remain responsible for repaying any facility they may takeout.

If you or a client are considering applying to the Government loan scheme to support your business during this unprecedented time, please contact your usual Beavis Morgan Client Partner or email

For further information about the Government measures to protect individuals and businesses, visit our COVID-19: Support for UK businesses hub.