Furlough scheme further extended until April

December 23, 2020, By

The Chancellor has further extended the Coronavirus Job Support Scheme until the end of April.

The Coronavirus Job Retention Scheme (the “Furlough Scheme”) was originally due to come to an end on 31 October 2020. This was temporarily extended ‘until December’ and subsequently to 31 March 2021. The Government has now announced that the Furlough Scheme, will be extended for a further month until 30 April 2021.

What we know so far:

  • The scheduled review of the employer contribution element of the scheme in January will no longer happen. The Chancellor explained that the move was to provide certainty and “enable businesses to plan ahead regardless of the path the virus takes…”  This will no doubt be welcome news for both employers and employees with eligible employees retaining the hope of job security well into the first quarter of 2021 and employers avoiding the risk of losing good eligible members of staff.

 

  • The Government will continue to contribute 80% of employees’ wages for hours not worked until the end of April.

 

  • For hours worked, employers will be required to pay wages, National Insurance Contributions (NICS) and pension contributions as usual.

 

  • For the hours not worked (where the Government pays 80% of wages), NICS and pension contributions remain payable by the employer.

 

  • All other conditions of the Furlough Scheme remain the same.

Contact the team with any questions

If you require any further information in relation to the extended scheme, including how to implement it in your business and the related agreements, please call us on 0161 969 3131 or reach out to our employment team here.