December 18, 2020

Furlough Scheme Extended, Again

David Dixey, specialist employment lawyer at Holmes & Hills Solicitors, discusses the latest announcement regarding the Furlough Scheme.

Previous articles have covered the role out and extension of the Coronavirus Job Retention Scheme (CJRS), or Furlough scheme, from its inception to the extension of the Scheme beyond October 2020.  

On 17 December, the Chancellor announced a further extension to the CJRS until the end of April 2021.    It had previously been extended to the end of March 2021.  

It was originally intended that the Government would review the workings of the CJRS at the end of January, with changes expected to be announced regarding the operation of the Scheme throughout February and March. However, the Chancellor decided to bring forward this review to allow businesses to plan ahead.  

Employers will remain able to claim 80% of employees’ wages, capped at £2,500 per month for hours not worked.   Employers will continue to be required to pay the National Insurance and Employer Pension Contributions on employees’ furlough pay.  

This recent announcement will hopefully reassure employers and employees alike; it had been expected that from February onwards the Government contribution towards furlough pay would be reduced.   The Chancellor’s recent announcement indicates that this will not be the case.

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