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Chancellor extends Job Retention Scheme until end of October

By Rachel Lawlercoronavirus job retention scheme

Chancellor Rishi Sunak has confirmed that the Coronavirus Job Retention Scheme will now be available until the end of October 2020.

The Chancellor also said that there will not be any changes to the scheme until the end of July, with employers still able to claim up to 80% of furloughed workers' pay up to a maximum of £2,500 a month per worker.

From August onwards, the scheme will allow for greater flexibility with workers able to return to work part-time and the Chancellor suggested that employers may need to make greater contributions to their employees' salaries.

Previously, the scheme was set to finish at the end of July. 

Neil Leitch, cheif executive of the Alliance, said: "While we welcome the extension of the Job Retention Scheme and the news that employers will be able to bring employees back part-time as of August, we remain incredibly concerned about the financial viability of the childcare sector, particularly over the next few months as providers look to potentially reopen.

"With the initial demand for childcare places expected to be significantly reduced, and still no clarity from the government on whether existing support schemes for the sector will continue during this time, the outlook for many nurseries, pre-schools and childminders across England is very uncertain.
"The government's refusal to reverse its decision to limit how much support childcare providers can access via the Job Retention Scheme has already had a hugely damaging impact on the sector. It is absolutely vital, therefore, that the government confirms exactly what funding will be made available to providers to ensure they are able to stay afloat during this transitional period.
"There are many significant financial challenges facing the childcare sector at the moment and the extension of the furlough scheme - while helpful - is, by itself, not the solution."

Useful links

Business Advice page: FAQs for providers

Blog: Quick Q and A: Job Retention Scheme and early years entitlement funding