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Manchester Evening News
Manchester Evening News
National
James Andrews & Rachel Pugh

Official date for first furlough payments announced

As a result of the coronavirus pandemic, businesses across the country have been forced to shut shop, with many left unable to pay staff.

As a result, the Government launched a furlough scheme - which pays 80 per cent of staff's usual wages if they are left unable to work.

The scheme was first outlined last month, and ever since, people have been asking when the first payment will be made.

Now we have answers, as Rishi Sunak has said the first cash will be made available to cover the wages of staff on furlough from April 20.

During the Government's daily briefing, the Chancellor said the "working assumption" is that his furlough payments system will open on Monday next week, with cash going out before the end of the month, reports the Mirror.

There will be several days between submitting an application and receiving cash," Sunak added.

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The delay between applications and money being transferred is caused by the need to carry out fraud checks and process payments.

As many as nine million staff have been placed on furlough with two out of three firms in three using the option to save money while businesses are closed.

And in many cases it's not just a few people either, with a survey by the British Chambers of Commerce showing one businesses in three has furloughed between 75% and 100% of its workforce due to the coronavirus crisis.

What does this mean for your pay

The Government scheme covers 80% of pay up to £2,500 a month for furloughed staff, but it's still up to your boss to pay you - with them taking the decision of when and how much of your salary to send.

Some firms have said they will be unable to pay staff until they receive the first cash from the Government, while others have committed to paying full salaries as usual regardless of when the scheme kicks in.

Which means, even if your boss has furloughed you, it's them you should speak to regarding pay.

There are also concerns that cash will not arrive before paydays are due - putting more strain on firms.

BCC director general Adam Marshall said: "While we've seen a high number of firms furloughing staff in anticipation of the Job Retention Scheme coming online, it is still unclear whether they will start receiving funds before their payroll date, which could exacerbate the cash crisis many businesses are facing.

"It is essential that the Job Retention Scheme makes payments to businesses as soon as possible. Any delay could mean more livelihoods under threat, more business failures, and more hardship in our communities."

A Treasury spokeswoman said: "We've been taking unprecedented action at unprecedented speed to help businesses, jobs and our economy during this crisis - with hundreds of thousands of firms across the county benefitting from our wide package of support.

"Our jobs retention scheme is ensuring people are able to stay employed during the outbreak and approvals for our business interruption loan scheme has shown an eightfold increase in the last two weeks - with around 4,200 loans worth just over £800 million.

"We're working closely with banks to ensure we get this support out to those who need it as soon as possible."

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