Furlough Scheme Extended (Again) and 80% Contribution Promised Until April 2021

Lauren Wilson
18th Dec 2020

By Lauren Wilson, Solicitor.

 

Yesterday afternoon, the government announced that the Coronavirus Job Retention Scheme (furlough scheme) is being extended by a further month until 30 April 2021.

 

When the furlough scheme was last extended, the government had vowed to review its contributions under the scheme in January 2021. It had been suggested that the government may not continue to contribute 80% towards employee earnings thereafter.

 

However, yesterday the Chancellor confirmed that the government will continue to make the 80% contribution under the furlough scheme until the end of April. Employers will continue to only be required to pay wages and employer's National Insurance and pension contributions for both hours worked and furloughed hours.

 

It has also been confirmed that the eligibility criteria for the furlough scheme will remain unchanged and that the extension shall apply across all UK nations.

 

In the same announcement, the government also confirmed that the government-guaranteed Covid-19 business loan schemes will continue to be available until the end of March 2021.

 

You can read the government announcement here.

 

If you have any questions on the extension of the furlough scheme, or if you require support or advice on any other employment law matters, please do not hesitate to contact the team on 0141 331 5150.

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