Breaking News: Furlough Extended to March 2021
Key Contact: Claire Knowles
Author: Rebecca Mahon
The Chancellor has just finished speaking in Parliament. In a dramatic announcement, he has confirmed that the furlough scheme will be extended to 31 March 2021.
The Chancellor’s message was quite straight forward. The Bank of England are predicting a slow economic recovery. The economic picture is, frankly, worsening. As such, the Government want to offer businesses and individuals “certainty” and “security through the winter”. The Chancellor said that whilst the health restrictions will only last until the start of December, the financial impact of those restrictions will go on much longer.
The furlough scheme will continue on the current arrangements (employees receive 80% pay for hours not worked, employers will only have to contribute pension and NICs). This will be reviewed in January and employer contributions may increase if the economy picks up.
The scheme will be extended UK wide. The job retention bonus, which was due to be payable to employers who kept on previously furloughed employees until 31st January 2021 will be suspended, to be redeployed at an appropriate time.
Further information is expected over the coming days.
For advice and support on either of the schemes and their detail, please contact our employment team.