Furlough extended again

Chancellor Rishi Sunak has announced in last week’s Budget (3 March 2021) that the Coronavirus Job Retention Scheme (“furlough scheme”) will be extended until the end of September 2021

The furlough scheme, where the government pays 80% of employees’ wages for the hours they cannot work during the pandemic – up to a limit of £2,500 a month – had been due to close at the end of April 2021 but will now be extended until the end of September.

As the furlough scheme continues, from July employers will be expected to contribute 10% of a furloughed worker’s wages, rising to 20% in August and September, as the economy starts to reopen.

While the extension will provide some breathing space for many employers who are looking to retain staff until a time when they can return to work, furlough is not free and the increased employer contribution will mean some employers may not be able to afford to keep staff furloughed. If you need advice on bringing employees back from furlough or need to make redundancies please get in touch our employment team are here to help.

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