THE UK Government’s eagerly-awaited furlough scheme, that is aimed to potentially save millions of British jobs, begins today - 10 days ahead of schedule.

The launch of the Coronavirus Job Retention Scheme, which will enable firms to claim towards staff wages, comes as UK ministers were warned of the economic cost for many companies of any delay in its implementation.

Chancellor Rishi Sunak, announcing that the scheme will go live from today, said: "Our unprecedented job retention scheme will protect millions of jobs across the country and is now up and running.

READ MORE: Coronavirus: How does the Covid-19 furlough scheme work?

"It's vital that our economy gets up and running again as soon as it's safe - and this scheme will allow that to happen."

Under the furlough scheme, employers can go online to claim cash grants worth up to 80% of wages, capped at £2,500 a month per worker.

Approximately 5,000 HM Revenue and Customs staff will operate the scheme, intended to help thousands of UK firms; the money was due to reach bank accounts within six working days, the Treasury said.

Phone lines and web-chat services will be available to help answer applicants' questions.

As thousands of firms were faced with the prospect of announcing lay-offs this week, Mr Sunak last week announced the scheme would be extended for a further month until the end of June in light of the ongoing countrywide Covid-19 lockdown.

Adam Marshall, Director General at the British Chambers of Commerce, pointed out that its research showed two-thirds of firms had furloughed some part of their workforce.

He said: “The opening of the Job Retention Scheme is an important milestone for businesses, who can now begin to access the cash they need to pay their staff and protect livelihoods.

“The Government deserves credit for the speed, scale and flexibility of its response to the challenges facing our business communities. The focus should now be on delivering this support to firms on the ground.”

He added: “With April’s payday approaching, it is essential that the application process is smooth and that payments are made as soon as possible. Any delay would exacerbate the cash crisis many companies are facing and could threaten jobs and businesses.”

Jonathan Geldart, Director General of the Institute of Directors, stressed that the scheme was crucial in protecting jobs and ensuring the recovery, when it came, could take off as quickly as possible.

"We applaud the efforts of the scheme's staff who will be working with businesses in desperate need of support, and we will continue to work with ministers to ensure that support reaches all who need it."

Rain Newton-Smith, the CBI’s Chief Economist, said: “The Chancellor has already shown a willingness to do whatever it takes and act at speed during unprecedented times.

“Rolling out the job retention scheme will make a huge difference to tens of thousands of firms and millions of people, protecting jobs and living standards throughout the UK.

“Ensuring support gets to where it’s needed most – fast – is of the utmost importance.”

Emma McClarkin, Chief Executive of the British Beer & Pub Association, added: “As a sector employing one million people, we greatly welcome the extension of the Job Retention Scheme into the summer.

“It will help pubs that are struggling through this crisis who are key employers in regions and communities across the whole of the UK. Rest assured the action taken by Government has prevented job losses.”

The Job Retention Scheme is part of an package of measures announced by the Chancellor to support the country through the coronavirus pandemic. He has already supported employers with a £30bn injection of cash by deferring VAT payments for the next quarter, has launched a scheme for the self-employed, loans for businesses and a rise in Universal Credit.

Meanwhile, the Chancellor also announced a new £1.25 billion coronavirus package to protect firms driving innovation in UK. The package includes a £500m investment fund for high-growth companies impacted by the crisis, made up of funding from Government and the private sector.

Small and Medium Enterprises focusing on research and development will also benefit from £750m of grants and loans.