November lockdown: Furlough scheme extended

Tools on bench. Photo by Hunter Haley on Unsplash

On 5 November, Chancellor Rishi Sunak announced that the Coronavirus Job Retention Scheme (also known as the furlough scheme) will stay open until 31 March 2021.

How much can you claim?

For your furloughed workers, you’ll be able to claim reimbursement for 80% of their current salary, up to a maximum of £2,500.

Since August, the Government were tapering the amount of money you could claim through the Scheme to reflect that people were returning to work. However, because the UK is now under lockdown measures again, you’ll be able to claim more compensation.

As an employer, you’ll be asked to pay their National Insurance and employer pension contributions for the hours your staff haven’t worked. The Government estimates that for an average claim, this will be £70 per employee, per month (5% of the total employment costs).

The Government will review the extension to the furlough scheme in January 2021 – if the the economic situation has improved enough, employers will be asked to increase contributions.

For the latest information, check the Gov.uk website:
Gov.uk | Claim for your employees’ wages through the Coronavirus Job Retention Scheme

See also: Tide guide to the Coronavirus Job Retention Scheme

Source for this page: Gov.uk | News story | Government extends furlough to March

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Photo by Hunter Haley on Unsplash

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