3rd March 2021
The Government furlough scheme will be further extended until September 2021.
Rishi Sunak’s Budget announcement today revealed what many had been speculating and the furlough scheme was confirmed to extend in order to protect jobs and incomes of many people across the UK.
Around this time 1 year ago the UK was first on high alert to the coronavirus. On 16th March 2020 people were urged to work from home if they could and just a week later schools and colleges closed as the country went into lockdown.
The Government introduced a furlough scheme, where 80% of employees’ wages would be paid by the Government. This was hoped to be a short-term measure but as the UK has gone in and out of lockdowns with many businesses forced to close their doors, it has become a lifeline for businesses and individuals.
At its peak 8.9 million workers were covered by the furlough scheme. The scheme has been extended a number of times, although there is considerably less employees furloughed than at the peak.
Employers will be expected to contribute 10% in July, increasing to 20% in August and September as the economy reopens. By the Summer all businesses are hoped to be back open and running as long as the infection rates, death rates and vaccination rates progress in the right direction.
There is a process to follow when furloughing staff and submissions for claiming back wages must be accurate and submitted on time.
If you need any legal support for your business or advice relating to your workforce, please get in touch with our Employment Law Team on 01256 844888 or email firstname.lastname@example.org.
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The contents of this article are for the purposes of general awareness only. They do not purport to constitute legal or professional advice. The law may have changed since this article was published. Readers should not act on the basis of the information included and should take appropriate professional advice upon their own particular circumstances.
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