5th November 2020
Chancellor extends furlough scheme to protect businesses affected by COVID-19.
Following the recent extension of the Coronavirus Job Retention Scheme (CJRS) (furlough scheme) to December in light of the current national lockdown, Chancellor Rishi Sunak has today announced that the scheme will remain open until 31 March 2021.
Currently the scheme reverts to the same level of contribution there was in August 2020, whereby employees will receive 80% of their usual salary for hours not worked, up to a maximum of £2,500 per month.
The Government intends to review the above level of funding in January 2021. Taking into account whether economic circumstances are improving enough, it will decide whether to ask employers to contribute further.
What we know so far
Subject to more detailed rules and guidance expected on 10 November 2020, a brief overview of how the extended scheme will operate:
Please note: Nothing in this article constitutes legal advice and we are not liable for any reliance on the information provided. This is a rapidly changing subject, and whilst correct at the time of writing, circumstances may have changed since publication. Please refer to Gov.uk for up-to-date advice on the Government’s response to this issue.
To find out more about anything covered in this article, or to discuss the potential impact of COVID-19 on your business, please contact Kerrie Hunt or another member of Thrings’ Employment and Immigration team.