Furlough Scheme Extended Until 31 March 2021

Furlough Scheme Extended Until 31 March 2021

Yesterday, Chancellor Rishi Sunak announced that the furlough scheme will now be extended until the end of March 2021.

Employees placed on furlough leave will continue to receive 80% of their salary as paid for by the Government. This appears to be a u-turn by the Chancellor and the Government, given their previous statements against extending the furlough scheme past November.

For employers, the contributions to cover the cost of furloughing employees is reducing back to the original position back in March. This means employers will now only need to cover Employer's NIC contributions and Employer Pension Contributions.

As previously reported, the scheme's defining features remain the same. The announcement however provided clarity on parts of the scheme, which up until the announcement have remained unclear:

  • Employees made redundant after 23 September 2020 can now be brought back and furloughed if appropriate;
  • The policy will be reviewed in January, with regard to economic circumstances, which may see a change in employer contributions; and
  • The furlough scheme applies to the UK as a whole.

Further information on who can claim and how to claim, can be found on the Government website: https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme

If you need further information on the furlough scheme, the implications of the extension or advice on how to furlough employees, please contact our expert employment team today. Call 01603 693500 or email us using 'Make an enquiry' form on our website. Face-to-face meetings are available by appointment only at our Norwich, North Walsham and Sheringham offices.

*This article is accurate at the time of writing (6th November 2020). This article is provided for general information purposes only and does not constitute legal advice or other professional advice.