The furlough job retention scheme has been extended until the end of March 2021, the Chancellor of the Exchequer has announced.
Rishi Sunak announced today, Thursday November 5, that the furlough scheme is to be extended until the end of March 2021, when it was due to end last month.
This is due to the UK’s second lockdown, which started mightnight last night, November 4, for four weeks which could affect businesses and jobs across the UK.
The Chancellor confirmed the payments would remain at 80% of people’s wages, with a review of the policy in January.
In the scheme employees receive four-fifths of their current salary, up to a maximum of £2,500 of hours not worked.
On the government website, the policy paper titled Extension of the Coronavirus Job Retention scheme states: “The CJRS (also known as the furlough scheme) will remain open until 31 March 2021.
“For claim periods running to January 2021, employees will receive 80% of their usual salary for hours not worked, up to a maximum of £2,500 per month.
“The government will review the policy in January to decide whether economic circumstances are improving enough to ask employers to contribute more.”
“The £2,500 cap is proportional to the hours not worked.”