Furlough scheme update
The UK government first announced the furlough scheme during the first lockdown in March 2020. This allowed employers to continue paying employees although they could not work due to the pandemic. The scheme pays 80% of employees’ wages for time they cannot work. During the “budget speech”, Chancellor Rishi Sunak announced changes to the furlough scheme.
What are the furlough scheme changes for March 2021?
It is said that over 1.1 million people have had their wages covered through the furlough scheme which has saved mass joblessness.
The furlough scheme has been extended until the end of September 2021. By July 2021, employers will be expected to pay 10% towards the hours that their staff do not work due to the pandemic as the government expects lockdown restrictions to be eased by then. This is due to increase to 20% by August and September 2021, with the aim that the economy re-opens and more businesses are able to get up and running.
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