Chancellor Rishi Sunak has today announced that a further extension has been implemented to the furlough scheme taking it right through until March 2021. As below, the scheme was originally due to end on 31st October but had already been extended to cover the second lockdown which came into effect today and is expected to be in force until December 2nd.
You can find the full Government news story on the second extension here: Government extends Furlough to March and increases self-employed support
As announced on 31st October 2020, the government have extended the Furlough scheme by an additional month which will entitle employees to receive 80% of their salary for hours that are not worked. This was met with some distain as many companies had already had to lay their staff off prior to this announcement as they believed the scheme to be ending.
Coronavirus Job Retention Scheme (CJRS) – also known as the Furlough scheme – will now remain open until December, with employees receiving 80% of their current salary for hours not worked, up to a maximum of £2,500.
In addition, business premises forced to close in England are to receive grants worth up to £3,000 per month under the Local Restrictions Support Grant. Also, £1.1bn is being given to Local Authorities, distributed on the basis of £20 per head, for one-off payments to enable them to support businesses more broadly.
To give homeowners peace of mind too, mortgage holidays will also no longer end as originally planned.
Chancellor Rishi Sunak said:
Over the past eight months of this crisis we have helped millions of people to continue to provide for their families. But now – along with many other countries around the world – we face a tough winter ahead.
I have always said that we will do whatever it takes as the situation evolves. Now, 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.
You can read the full government press release here:
Full Government Press Release
If this is the first you have heard about Furlough or the Job retention Scheme or you would like more information about the scheme itself then please check out our full definitive guide here:
Furlough: The Definitive Guide