Christmas Furlough update
We never thought it would happen again, but today (17th December 2020), the Chancellor Rishi Sunak confirmed that the furlough scheme would be extended again. He also announced a few other updates.
The furlough scheme will now be extended until the 30th April 2021;
- Employer contributions have been reviewed and do NOT change;
- The Government will still continue to pay up to 80% of employees’ wages (capped at £2,500 per month);
- The Employer will only need to continue paying:
- wages for hours worked;
- National Insurance contributions (for hours worked and hours not worked); and
- pension contributions for hours worked
The eligibility criteria for the furlough scheme have not changed since our last update (Furlough Update – 12th November).
Businesses now have until the end of March 2021 to access the Bounce Back Loan Scheme, Coronavirus Business Interruptions Loan Scheme, and the Coronavirus Large Business Interruption Loan Scheme. Previously these were supposed to close at the end of January 2021.
The next steps are due to be announced in March 2021 when the Chancellor confirms the Budget. He’s said that at that stage he’ll be able to set out the next phase of the plan for tackling the continuing pandemic and help businesses protect jobs.