Additional Coronavirus support announced as furlough scheme extended
Date: November 9th 2020
The Chancellor of the Exchequer Rishi Sunak announced this week that the Coronavirus Job Retention Scheme (known as the Furlough Scheme) will be extended until March 2021.
The scheme initially came to an end on 31st October 2020, with the Job Support Scheme set to take over as businesses were expected to be gearing back up and bringing staff back to work. The extension came alongside the announcement of an English national lockdown, but is available to all employers in the UK.
The scheme will continue on the basis that employers can re-claim 80% of wages for furloughed employees up to £2,500. Employers will still have to pay Employer NICs and pension contributions in respect of hours not worked. The extension will be reviewed in January, and the amount employers are being asked to pay could increase.
As a result of the extension, the previously announced Job Retention Scheme has been scrapped and may be replaced in 2021.
Sunak also announced that an additional £2 billion of funding would be available to the devolved nations, meaning Wales, Scotland and Northern Ireland have now had a share of £16 billion of covid-19 related funding.
The self-employed have been supported further, with cash grants of up to £3,000 per month, the chance to top-up Bounce Back Loans and extension to mortgage holiday payments.
If you need any support for your business, including employment support, please contact DJM’s Corporate and Commercial department on 01792 650000.