When the Chancellor introduced the Job Retention Scheme, it was made clear administrators should make use of the scheme during the coronavirus shut-down so that once the market picked up, they would have a workforce ready to get back to work as soon as a suitable buyer could be found for the business.
But this will not work if the companies in administration making use of the furlough scheme will have to start sharing the cost of the wages in furlough. Most of those businesses will have no cash coming in and no guarantee of a sale to generate funds once the shut-down is over. Keep your eyes open for an announcement about businesses in administration which are using the scheme over the coming days, and let's hope it's sensible!
The chancellor also said that from August, employers would need to “share with the government the cost of paying salaries,” in an indication that the level of state support would gradually taper away.