The Government has extended the furlough scheme for employers until the end of March 2021, as a second lockdown in England is announced to slow the resurgence of COVID-19.
Furloughed employees will now receive 80% of their current salary – up to £2,500 – for hours not worked, initially until the end of March 2021, Sunak told the Commons that the government will review the policy in January 2021.
In recent months, employers topped up furloughed workers’ wages by 20%, while the state paid 60%. Now, the Government will up their contributions to 80% for another 5 months.
Employers are still required to cover furloughed workers’ National Insurance and workplace pension contributions.
Chancellor Rishi Sunak said:
“As restrictions get tougher, we are taking steps to provide further financial support to protect jobs and businesses.
“These changes will provide a vital safety net for people across the UK.”
In Northern Ireland, Scotland and Wales, where other national restrictions apply, the furlough scheme will only be available for the duration of the English lockdown.
Talk to us about the furlough scheme.