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11 May 2020updated 06 Oct 2020 9:45am

Report: Government to extend furlough scheme through September at reduced payment rate

By Samuel Horti

The government’s scheme for furloughed staff will be extended until the end of September, with payments reduced from 80 per cent of wages to 60 per cent at the end of June, according to a report in the Telegraph.

Chancellor Rishi Sunak has previously said he is looking at ways to wind down the scheme, which is due to end June 30. It currently pays furloughed staff 80 per cent of their wages up to a maximum of £2,500 a month. Cabinet ministers have now told industry leaders that the scheme will run until the end of September at a reduced rate, the report said.

The government will also “top up” the wages of workers who return to work part-time, sources said.

Sunak could announce the extension as early as tomorrow. A Treasury source said a final decision had not yet been taken.

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