Furlough scheme to be extended for another month to run until end of April, Rishi Sunak reveals
The furlough scheme will be extended for an extra month until the end of April, Chancellor Rishi Sunak has announced.He also said he would set out the next Budget on March 3, 2021.
He said the statement will “deliver the next phase of our plan to support our recovery from coronavirus and protect jobs”.
The furlough extension is a further indication of the continuing impact the Covid pandemic is having on the economy and jobs.
Mr Sunak said: “Our package of support for businesses and workers continues to be one of the most generous and effective in the world – helping our economy to recover and protecting livelihoods across the country.
“We know the premium businesses place on certainty, so it is right that we enable them to plan ahead regardless of the path the virus takes, which is why we’re providing certainty and clarity by extending this support, as well as implementing our plan for jobs.”
Under the furlough scheme the Government will continue to pay 80% of the salary of employees for hours not worked until the end of April.
Employers will only be required to pay wages, National Insurance Contributions (NICS) and pensions for hours worked; and NICS and pensions for hours not worked.