The Government has said they want to "wind down" the furlough scheme on 30th June. 

However, the furlough scheme is protecting 1 in 5 workers from redundancy. Ending it too early would be a disaster for millions of families and our economy. 

That is why – working with businesses - Liberal Democrats have created a new plan to protect employees, their families and the businesses they work for.

The plan includes:

1. A "Safe to Return to Work Scheme" providing a new wage subsidy for all employees coming off furlough, with:

●50% of salary paid during the first month in work, after furlough.

●40% of salary paid during the second month in work, after furlough.

●30% of salary paid during the third month in work, after furlough.

The current £2,500 cap under the Job Retention Scheme would be reduced in line with these percentages.

The scheme would begin once the lockdown ends.

If a company commits to employing the staff member for at least 6 months, this new 3 month wage subsidy could be paid upfront, to ease cashflow further.

2. New “Prepare to Return to Work” flexibility for part-time work in the Jobs Retention Scheme:

Building new extra flexibility into the existing Jobs Retention Scheme, to help businesses prepare for a return to work.

From 1st June, a furloughed employee would be allowed to work up to 50% of their time, whilst remaining on furlough, with the existing 80% wage subsidy.

This revised Jobs Retention Scheme would continue until the lockdown is eased and the “Safe to Return to Work Scheme” is introduced.

The furlough scheme is protecting millions of people from risk of redundancy - yet the Government is now suggesting it will "wind down" the scheme.

We cannot let this happen. We must extend the furlough scheme and protect those workers 👇https://t.co/u8C5iximJ9

— Liberal Democrats (@LibDems) May 6, 2020

Our plan will keep some furlough payments as lockdown is eased so businesses can recover. The shadow of the lockdown will be long, and the ‘new normal’ will be challenging for businesses.

The Liberal Democrat Job Protection Scheme will help businesses to rebuild, stop job losses and stop unnecessary damage to our communities.