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Government extends furlough scheme

The Government has extended its furlough scheme for a month, as England prepares to re-enter lockdown for a second time.

Hours before the furlough scheme was due to end, the Government abandoned plans to introduce the job support scheme on 1 November 2020.

Instead, employees in England will receive 80% of their current salary up to £2,500 for hours not worked, initially until 30 November 2020.

The Government said the month-long extension would reduce the cost for employers retaining workers, compared to the final month of the current scheme.

In recent months, employers topped up furloughed workers’ wages by 20%, with the state paying 60%. Now, the Government will pay 80%.

Employers are still required to cover furloughed workers’ National Insurance and workplace pension contributions.

The Treasury also revealed businesses forced to close in England are to receive grants worth up to £3,000 per month under the local restrictions support grant.

Chancellor Rishi Sunak said:

“We face a tough winter ahead. I have always said we will do whatever it takes as the situation evolves.

“Now, as restrictions get tougher, we are taking steps to provide further financial support to protect jobs and businesses. These changes will provide a vital safety net for people across the UK.

Speak to us about the furlough scheme.