Furlough scheme extended

Furlough scheme extended

This update is written and posted on 3^rd March 2021 and will quickly become out of date once further details are known. We will endeavour to update it as soon as information becomes available.

The Chancellor has today announced that the Coronavirus Job Retention Scheme (commonly known as furlough) will be extended until the end of September 2021.

The scheme will continue to pay 80% of wages, up to £2,500 a month per employee, up to the end of June. Businesses will be required to pay employer pension and National Insurance contributions.

For employees who are furloughed in July, employers will need to pay 10% of wages, with the furlough scheme paying 70%.

This amount employers must pay increases to 20% for employees furloughed in August and September, with the furlough scheme paying 60%.

Employers should remember that furlough pay cannot be claimed for any period of notice.

If you have any specific questions, please e-mail reception@sherborneslaw.co.uk and we will try to cover the point when the answer is available.