Today, as part of the Spring Budget, the Chancellor announced that this has been extended for a fourth time, until 30 September 2021, providing continued support to those businesses and charities that have had to close their doors as a result of the pandemic. As it currently stands, the extended furlough scheme will support organisations in a similar way to the previous scheme, with the government paying 80% of the gross ‘wage costs’ for each eligible worker up to a maximum of £2,500 per month for the hours not worked. Employers will continue to be required to pay National Insurance Contributions and pension auto- enrolment contributions of furloughed employees. Flexible furlough, as well as full time furlough will continue to be allowed.
The key change in the extension of the CJRS is that from July, the government contribution will drop by 10% to a maximum of 70% and employers will have to pay 10% towards hours their staff do not work. In August and September, as the economy reopens, the government will pay 60% with employers contributing 20% towards the hours their staff do not work. The scheme will then end on 30 September 2021.
Today, as part of the Spring Budget, the Chancellor announced that this has been extended for a fourth time, until 30 September 2021, providing continued support to those businesses and charities that have had to close their doors as a result of the pandemic. As it currently stands, the extended furlough scheme will support organisations in a similar way to the previous scheme, with the government paying 80% of the gross ‘wage costs’ for each eligible worker up to a maximum of £2,500 per month for the hours not worked. Employers will continue to be required to pay National Insurance Contributions and pension auto- enrolment contributions of furloughed employees. Flexible furlough, as well as full time furlough will continue to be allowed.
The key change in the extension of the CJRS is that from July, the government contribution will drop by 10% to a maximum of 70% and employers will have to pay 10% towards hours their staff do not work. In August and September, as the economy reopens, the government will pay 60% with employers contributing 20% towards the hours their staff do not work. The scheme will then end on 30 September 2021.