It was announced by the Chancellor, Rishi Sunak, on 3 March, that the Coronavirus Job Retention Scheme (commonly known as furlough) is to be extended once again. This time it is to be extended from 30 April 2021 to 30 September 2021.
An employee on furlough will still receive 80% of their wages (up to a maximum of £2,500 per month) for hours not worked.
However, from 1 July 2021, the government will only contribute 70% of the employee’s wages for hours not worked (the other 10% to be made up by the employer) and from 1 August 2021 the government will only contribute 60% of the employee’s wages for hours not worked (the other 20% to be made up by the employer).
Although nothing is certain, with the positive effects of lockdown and the vaccination programme in dealing with Coronavirus, the government probably see this as the last time they will need to extend furlough.
The law in this article is current as of 4 March 2021.
© 2021 GSC Solicitors LLP. All rights reserved. GSC grants permission for the browsing of this material and for the printing of one copy per person for personal reference. GSC’s written permission must be obtained for any other use of this material. This publication has been prepared only as a guide to provide readers with general information on recent legal developments. It is not formal legal advice and should not be relied on for any purpose. You should not act or refrain from acting based on the information contained in this document without obtaining specific formal advice from suitably qualified advisors.