OGUK Praises Furlough Extension

UK offshore association Oil & Gas UK (OGUK) has welcomed the government's extension of a furlough scheme for workers from the end of October until the end of March 2021.

Chancellor Rishi Sunak announced the extension of the Job Retention Scheme on November 5. Under the scheme, workers will be paid up to 80% of their wages up to a £2,500 ($3,300)/month limit, while grants of up to £7,500 will be provided for the self-employed.

Sunak said the extension would "give businesses security through the winter."

"I’ve always said I would do whatever it takes to protect jobs and livelihoods across the UK – and that has meant adapting our support as the path of the virus has changed," Sunak said. "It’s clear the economic effects are much longer lasting for businesses than the duration of any restrictions, which is why we have decided to go further with our support."

The scheme was initially extended until December 2 to cover a four-week lockdown in England. But after pressure from devolved administrations, it was made nationwide and extended into next year.

The extension provides a "a vital lifeline to many of our members enabling them to retain hundreds of workers in our industry whose skills and capabilities we will need to deliver deferred work, enable recovery and support our efforts in the transition to a low carbon future," OGUK said in a statement on November 5. "Along with so many people facing continuing uncertainty due to Covid-19, our sector faces extra pressures generated by volatile oil and gas prices."

"These challenges inevitably mean recovery will take longer but we are doing all we can to support our supply chain and mitigate against further job losses," the association continued.  "Through playing our part in delivery a green recovery, realising the full potential of the government’s  North Sea Transition Deal and continued support for our industry, we can help keep energy costs low for households and families, retain jobs and create new roles for the future."