The government has recently announced that its furlough scheme will be extended until the end of June. The scheme’s wage subsidy programme for workers extension means that many renters will continue to be helped by the government to pay their rent and bills.

canstockphoto.com

The government announced this following its decision to extend Britain’s full lockdown for a further three weeks, until its next decision on restrictions will be made by 7th May.

The Treasury had to move swiftly to prevent firms triggering statutory redundancy consultations following the news on Thursday that the lockdown would continue.

Nimesh Shah, a partner at tax and advisory firm Blick Rothenberg, applauded the announcement.

Shah said: “This is another great move by the chancellor, Rishi Sunak, and gives workers comfort around their financial position for longer.

“But the increased cost to the government is alarming and questions need to be asked as to how this will be funded in the years to come.”

It was originally forecasted by the Resolution Foundation that the Job Retention Scheme (JRS) would cost the government around £40bn, but with the extension it will cost the exchequer nearer £50bn.

Shah added: “The JRS has been the cornerstone of the government package of support during the COVID-19 crisis.

“When the scheme was first announced, the original cost estimates were around £10bn. With the take-up of the scheme being higher than expected, with almost nine million workers being placed on furlough, that cost estimate was revised upwards to £30bn to £40bn.

“With the extension to the scheme until the end of June, the total cost will be in excess of £50bn.”