Chancellor Announces Extension of Furlough Scheme

By Jess Browne-Swinburne

5 Nov 2020

UPDATE: The level of grant available will remain the same until 30 June 2021. From 1 July 2021, the level of grant will be reduced and employers will be asked to contribute to furloughed employees’ wages. The government contribution will reduce from 80% up to £2,5000 in June, to 60% up to £1,875 in September.

*Extension of the Job Retention Scheme *

The furlough scheme has been extended until 31 March 2021. Employees will be eligible for 80% of their wages up to £2,500. Flexible furlough has also been extended.

Any employee who has been on an employer’s PAYE payroll by 11:59 on 30 October is eligible – including those who have not been furloughed before. Employees who were made redundant in September, ahead of the extension announcement, can be rehired and furloughed.

Employer contributions will be limited to pension contributions and NICs. Employer contribution levels will be reviewed in January.

** Job Retention Bonus **

This will no longer be deployed in January and has been postponed to a more appropriate time following the end of the JRS.


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