Furlough scheme is extended to the end of March 2021

Time 11 months ago

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.

‘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

John Bowman's avatar

John has been with Car Dealer since 2013 after spending 25 years in the newspaper industry as a reporter then a sub-editor/assistant chief sub-editor on regional and national titles. John is chief sub-editor in the editorial department, working on Car Dealer, as well as handling social media.

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