The Government has extended the furlough scheme until the end of March 2021.
It says the extension is needed because of the continued economic situation caused by the Covid-19 pandemic and will help protect millions of jobs throughout the UK as the country heads into the winter.
The furlough scheme subsidises the wages of people who cannot currently do their jobs, either because their workplace is closed, or because there is no longer enough work for them.
The scheme, introduced earlier this year as a result of Coronavirus, pays up to 80% of a person's wage up to £2,500 a month, and the extension will be welcome news for many employers.
Joan Pettingill, head of employment and HR services at Wake Smith Solicitors, said: “The Chancellor had previously extended the furlough throughout November due to the second national lockdown in England.
“This latest revision means furlough has been extended until March next year.
“The cost for firms of maintaining the scheme will be cheaper than it was last month when furlough was being wound down.”
The detail of the extended furlough scheme is now awaited. From previous Government announcements and as covered in our earlier articles, there may be some differences between this and the earlier furlough schemes.
There is also more money pledged for self-employed people. Support through the Self-Employment Income Support Scheme (SEISS) will be increased, with the third grant covering November to January calculated at 80% of average trading profits, up to a maximum of £7,500.
Guaranteed funding for the UK's devolved administrations has also been raised by £2bn to £16bn.
For further information about furlough and any employment matters get in touch with Joan Pettingill, Head of Employment Law & HR Services at Wake Smith Solicitors on 0114 224 2087 or email [email protected].
