Rishi Sunak has extended the furlough scheme until the end of March.
It was initially going to run for just another month during November, with the Job Support Scheme that was supposed to be replacing it put on hold, to coincide with England’s second lockdown
However, in a major U-turn by the government, Rishi Sunak told the Commons today (Nov 5) the longer extension was needed because of the economic situation caused by pandemic.
Bosses will have to pay employer National Insurance and pension contributions for hours not worked.
He said the government’s highest priority was ‘to protect jobs and livelihoods’, adding: ‘We can announce today that the furlough scheme will not be extended for one month, it will be extended until the end of March.
‘The government will continue to help pay people’s wages up to 80 per cent of the normal amount.
To give people across the UK certainty over the winter, I can announce today that the furlough scheme will not be extended for one month – it will be extended until the end of March.
Employees will receive 80% of their usual salary for hours not worked, up to £2,500 a month. pic.twitter.com/WtTqOcR61a
— Rishi Sunak (@RishiSunak) November 5, 2020
‘All employers will have to pay for hours not worked is the cost of employer NICs and pension contributions.
‘We will review the policy in January to decide whether economic circumstances are improving enough to ask employers to contribute more.’
The amount paid will be capped at £2,500 a month
- Register as a Car Dealer member and personalise your experience here
- NEW! Car Dealer Mag issue 152 is out now – Read it here
- Join our breaking news WhatsApp group – Click here to join now