I doubt many of us expected the Chancellor's announcement earlier today that the extended Coronavirus Job Retention Scheme "furlough scheme" would be extended until 31st March 2021. Good news for employers and employees as the economic effects of the pandemic continue to bite but maybe bitter sweet for us all as we face the reality of a lock down reaching far beyond 2 December 2020. We have been promised full guidance on 10 November but from the Chancellor's press release and various accompanying policy papers, we know the following about how long furlough will last in CJRS version 2.0.
- From 1 Nov 2020 to 31 Jan 2021, the Government will pay up to 80% of employee's wages if they are unable to work due to the pandemic - employers will need to pay national insurance and pension contributions for employee's non-working time (the same as in from 1 August 2020)
- The Government will review this in January 2021 and so the scheme from 1 February 2021 to 31 March 2021, may look different in terms of employer contributions
More details to come in our briefing to be found here: https://www.anthonycollins.com/newsroom/
Government extends Furlough to March and increases self-employed support