Retail NI reacts to Furlough Scheme next steps

Retail NI reacts to Furlough Scheme next steps

Chancellor Rishi Sunak has announced that the furlough scheme will be extended.

From 1 July 2020, businesses will be given the flexibility to bring furloughed employees back part time. This is a month earlier than previously announced to help support people back to work. Individual firms will decide the hours and shift patterns their employees will work on their return, so that they can decide on the best approach for them – and will be responsible for paying their wages while in work.

From August 2020, the level of government grant provided through the job retention scheme will be slowly tapered to reflect that people will be returning to work. That means that for June and July the government will continue to pay 80% of people’s salaries. In the following months, businesses will be asked to contribute a modest share, but crucially individuals will continue to receive that 80% of salary covering the time they are unable to work.

Reacting to the Chancellor’s announcement on the next steps for the Furlough Scheme, Retail NI Chief Executive Glyn Roberts said:

“It is clear that the furlough scheme is being gradually phased out with more costs for employers from August. Whilst this is not unexpected, it does significantly raise challenges for retailers in Northern Ireland who still do not have a date to reopen”

“The NI Executive’s recovery plan (published today) does not provide significant sections of our retail sector with reopening dates. Many of these businesses currently have no income and will be concerned that by August they may be liable for ER NIC and pension contributions”

“Retail NI wants to see a reopening timetable in June, based upon medical evidence for the retail sector as a whole to avoid this problem.”