Update – Furlough scheme extended

18 December 2020

The Government announced on 17 December that the end date for the Coronavirus Job Retention Scheme (aka the furlough scheme) will be moved back by a month to 30 April 2021.

Also, although employers had previously been expected to start contributing more to the costs of furlough from 31 January 2021, the latest announcement confirms that the Government contribution towards 80% of the salary of employees for hours not worked (up to £2,500) will continue through to 30 April 2021.

Employers will still be required to pay staff as normal (including benefits) for any hours worked, and also to be responsible for National Insurance contributions and auto-enrolment pension contributions for hours spent on furlough. Eligibility criteria to access the scheme remains unchanged.

More information on the Chancellor’s financial plans to support those affected by Covid-19 will be released as part of the Budget, on 3 March 2021.

The extension is aimed at providing businesses with the information and support required to plan ahead for the next few months, and it is hoped it will help to protect and create jobs and assist in business recovery following the pandemic.