Extension of furlough scheme

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Extension of furlough scheme

Published 18 December 2020

The Government announced yesterday that it is extending the Coronavirus Job Retention Scheme (CJRS) until the end of April 2021. (It had originally been due to finish at the end of March 2021).

The Government had also previously said that it would review the employer contribution element of the CJRS in January, however, it has now confirmed that the Government will continue to pay 80% of the salary of employees for hours not worked until the end of April. As now, employers will only be required to pay wages, National Insurance Contributions (NICS) and pension contributions for hours worked; and NICS and pension contributions for hours not worked. The eligibility criteria for the UK-wide scheme will remain unchanged.

The reason for the extension appears to be connected with the timing of the next Budget and the legal requirement of at least 45 days consultation period before effecting collective redundancies. The Chancellor has confirmed that the Budget will be on the 3 March.  Businesses will therefore now have time to consider the content of the Budget and any further support package more than 45 days before the new end date of the scheme.

Authors

Louise Bloomfield

Louise Bloomfield

Leeds

+44 (0) 113 251 4717

Joanne Bell

Joanne Bell

Manchester

+44 (0) 161 934 3179

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