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More on extended furlough scheme

More on extended furlough scheme

Andrea Wulff

3 March 2021 Update: Chancellor of the Exchequer, Rishi Sunak, announced during the Budget 2021 that the current furlough scheme (CJRS) will continue until 30 September 2021.

The Coronavirus Job Retention Scheme (CJRS) will apply across the UK and will continue to cover up to 80% of an employee’s salary subject  to a maximum of £2,500 per month for hours not worked.

Employers continue to be responsible for Employer National Insurance and pension contributions.

As the UK starts to have Covid restrictions lifted, employers will have to help cover the cost of their furloughed workers’ salaries.

From July, the government will contribute 70% and employers 10%.

August and September will see the government pay 60% and employers 20%

Employers claiming under the new scheme should also note:
  • The previously announced £1,000 Job Retention Bonus has been withdrawn now that the furlough scheme is extended.
  • One condition of the new scheme is that employers accept that HMRC will publish information about their claim on the internet. This will include the name of the employer and a reasonable indication of the amount claimed.
  • Furlough agreements must be in place before the start of a claims period. These agreements can be subsequently varied.
The extension of the furlough scheme is not specific to any sectors, so will be open to any employers that need to rely on the scheme. 

The Government has updated its guidance on the scheme here.