Initiative estimated to be costing Treasury 拢50bn
Chancellor Rishi Sunak is extending the government鈥檚 job retention scheme until the end of June.
The initiative, announced last month, was due to have ended on 31 May.
But this afternoon the Treasury said it was being extended until the end of June.
The scheme is due to formally open on Monday with payments backdated to 1 March.
Thousands of employees in the construction sector have been furloughed with this week the country鈥檚 biggest housebuilder Barratt putting more than 5,000 staff into furlough.
Sunak added: 鈥淚t is vital for people鈥檚 livelihoods that the UK economy gets up and running again when it is safe to do so, and I will continue to review the scheme so it is supporting our recovery.鈥�
Thinktank the Resolution Foundation has estimated the initiative will cost the Treasury 拢40bn for every three months the scheme is operating, meaning extending it by another month will push the total bill up to 拢50bn.
Under the scheme, the state pays 80% of furloughed workers鈥� wages up to a maximum of 拢2,500 per month. Employers then have the option to make up the remaining 20%.
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