Chancellor extends furlough scheme until end of April 2021


Chancellor of the Exchequer Rishi Sunak has extended the government’s furlough scheme for another month, until the end of April 2021. Mr Sunak said that the extension would deliver “certainty for millions of jobs and businesses” across the country. He also took the opportunity to confirm that the government-guaranteed Covid-19 business loan schemes would be extended until the end of March 2021.

The details of the scheme remain unchanged: the government will continue to pay up to 80% of furloughed employees’ wages. Employers will only be eligible to pay wages for hours worked and National Insurance contributions and pension contributions (for both hours worked and hours unworked). Eligibility for access to the furlough scheme also remains unchanged: if you qualified previously, you still do.

Mr Sunak said “Our package of support for businesses and workers continues to be one of the most generous and effective in the world – helping our economy to recover and protecting livelihoods across the country. We know the premium businesses place on certainty, so it is right that we enable them to plan ahead regardless of the path the virus takes, which is why we’re providing certainty and clarity by extending this support.”

If you need any help deciding whether you are eligible for the furlough scheme, or making an application, please don’t hesitate to contact JW Hinks today on 0121 456 0190.

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