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Furlough extended to end of April 2021

The Chancellor announced on the 17th of December that the Coronavirus Job Retention (‘furlough’) scheme will be extended beyond its current end date of 31st March 2021 and will now end on 30th April 2021.

For the duration of the furlough scheme, the Government’s contribution to pay will remain at 80% (subject to the existing cap of £2,500 per month), with only national insurance and minimum auto-enrolment pension contributions being paid by the employer.

In addition, Mr Sunak announced the extension of Government business loan schemes until the 30th of March 2021.

The Government has indicated that the furlough scheme will not change again, and has removed references to a January review in its online guidance.

The updated key dates are:

  • 14 January 2021 – final date to submit claims for December 2020 by 11:59pm
  • 15 February 2021 – final date to submit claims for January 2021 by 11:59pm
  • 15 March 2021 – final date to submit claims for February 2021 by 11:59pm
  • 14 April 2021 – final date to submit claims for March 2021 by 11:59pm
  • 14 May 2021 – final date to submit claims for April 2021 by 11:59pm.

The focus will swiftly shift in early 2021 to the Chancellor’s first post-Brexit budget on 3 March, where we can expect details of how business’ in the UK will be weaned off from the furlough scheme successfully, in order to protect jobs and industry more widely.

If the announcement affects your business, please contact Lexleyton to discuss your recovery strategy and how our specialist employment lawyers would assist.

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