Chancellor insists he will not extend furlough scheme beyond October

7 August 2020, 09:17 | Updated: 7 August 2020, 09:20

Rishi Sunak insists furlough scheme will end in October

By Adrian Sherling

Rishi Sunak has told LBC he will not extend the furlough scheme beyond October - even though they know it will cost jobs.

The government has paid the majority of the wages of 9.6million people since the scheme was launched in April.

That is due to finish on 31st October and yesterday, James O'Brien warned of a huge looming cliff-edge which will see hundreds of thousands of people losing their jobs.

But speaking to LBC, Mr Sunak insisted the scheme cannot go on indefinitely.

He said: "This has been a difficult decision. But if you look at it from start to finish, the government will have been stepping in to pay people's wages for eight months, which in and of itself is a very long period of time.

"Most reasonable people will look at that and say this is something which cannot go on indefinitely. It's not sustainable."

Tom Swarbrick spoke to Rishi Sunak during the Chancellor's trip to Glasgow
Tom Swarbrick spoke to Rishi Sunak during the Chancellor's trip to Glasgow. Picture: LBC

Tom Swarbrick asked him whether they have done an assessment on the number of jobs which will be lost when furlough ends.

Mr Sunak responded: "In common with most countries around the world, their versions of this are mostly coming to an end at the end of the this year.

"That doesn't mean that there is no support. We've put in place something called the Job Retention Bonus, which means that if you are a company which can successfully bring someone back from furlough and productively employ them through to January, then you will get £1,000.

"If you look at the wage distribution of people on furlough, that works out as quite a significant economic benefit to do so. That will make quite a difference we believe.

"It's clearly not the case that everyone can return to the job that they had. It would be wrong to pretend otherwise.

"For those people, rather than keeping them trapped in the uncertainty of a future we know won't exist, it's better to look forward and for us to provide them with new opportunities."

Watch his interview at the top of the page.

More Tom Swarbrick

See more More Tom Swarbrick

A sister has described the moment she punched a crocodile to save her sister.

'I wasn't going to leave her behind': Twin recalls punching crocodile to save sister

Susan Hall has dismissed Ed Miliband's claim that she would be an 'embarrassment' to Britain as the next London mayor.

Susan Hall dismisses as 'nonsense’ after Ed Miliband said she would be an ‘embarrassment’ as London Mayor

UK should prepare for 'something close to war', Nato's deputy tells LBC, amid warning members have 'neglected defence'

UK should prepare for 'something close to war', Nato's Deputy General tells LBC, as he warns Russia 'cannot be trusted'

Emma Webber (left) speaking to LBC

Mother of Nottingham attack victim Barnaby Webber blasts police ‘mistruths’ after force is put in special measures

Lord Harrington said there should be a cap on the number of asylum seekers the UK takes.

Former refugees minister Lord Harrington calls for a cap on the number of asylum seekers the UK takes

Mel Stride has backed the PM

Rishi Sunak has 'absolutely not' betrayed nation over Rwanda plan, insists minister after Braverman's attack on PM

Tom and caller

'Our family is there': Mother shares heartbreaking experience of being a British Jew during Israel-Hamas conflict

The ban will be brought into effect in months

'Children should be in the classroom to learn': Gillian Keegan orders 'blanket ban' of mobile phones in schools

Tributes have been paid to Elianne after she was stabbed to death in Croydon

Fellow pupil of schoolgirl stabbed to death in Croydon describes heartbreaking moment students were told of her killing

Scotland's first safe drug consumption space set to be openned

'Isn't this just decriminalising heroin?': Tom Swarbrick questions Labour MSP over first safe drug consumption room

The education secretary discusses educational reforms with Tom Swarbrick

Shadow education secretary says 'Building Schools for the Future Programme' would have prevented Raac crisis

Tom Swabrick

'Is it not completely mental?': Tom Swarbrick astonished as schools shut due to crumble-risk concrete before new term

Exam results

Equation sheets given to GCSE cohort in attempt lessen reduced grade inflation blow, schools minister says

Crime commentator on Adam Provan

Internal review of rapist ex-Met officer is the equivalent of 'marking your own homework', says crime commentator

Education Secretary discuss new Eton free schools on LBC

‘Bailed out by Eton’: Education Secretary discusses new free schools with Tom Swarbrick

Lucy Letby: We have to know what went so 'catastrophically wrong' says Tom Swarbrick

Lucy Letby: We have to know what went so 'catastrophically wrong' says Tom Swarbrick