By Ben Smith - 03 March 2021
The Chancellor announced today that the UK’s furlough scheme – the state subsidy of wages during the COVID crisis – will continue until 30 September 2021. This is a significant extension, as the previous end date for the scheme was 31 April 2021.
Employees will still be entitled to 80% (capped at £2,500) of their normal monthly earnings, but from 1 July employers will be required to contribute to this payment. Between 1-31 July 2021, employers will need to pay 10%, with the government paying 70%. From 1 August to 30 September, employers will be required to pay 20%, with the government paying 60%. As with the current rules governing the furlough scheme, employers will continue to be required to pay employer National Insurance Contributions and pension contributions on furlough payments.
Detailed guidance on the furlough extension will be published in due course, so watch out for an update to our Furlough FAQs.