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Further extension to the furlough scheme

In another surprise move by the Government in light of the current COVID-19 pandemic, the Chancellor has only days ago announced that the Coronavirus Job Retention Scheme is to be further extended until 30 April 2021.

Rishi Sunak announced on 17 December 2020, that the retention scheme will be further extended by another month, previously finishing in March 2021. The statement confirmed that all current eligibility criteria and grant levels will remain the same as they had previously been.

As a result, employers can continue to claim 80% of employee salaries for hours not worked, which is capped at £2,500. Employers will only need to pay employer national insurance and pension contributions.

This news by the Chancellor has come much earlier than expected, as he had previously committed to reviewing the scheme in January 2021. He states, that, it is to “provide certainty to businesses so that they can plan for the remainder of the winter and New Year”.

The statement will be a very welcomed announcement for many businesses and will help protect many businesses and thousands of jobs given the new tier restrictions.

To keep up to date on business, accountancy and more on how Covid could impact 2021, visit our resources site here.

 

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