2021 Budget – Furlough Scheme Extension

By Stevi Hoyle and Liliana Armitage

The government’s furlough scheme was due to come to a close at the end of April 2021. However, during his budget speech on 3rd March 2021, Chancellor, Rishi Sunak announced that the furlough scheme will be extended until the end of September 2021.

The extension to the furlough scheme means that employers will be able to continue to claim up to 80% of their furloughed employee’s pay, capped at £2,500.00 per month for each furloughed employee until the end of June. The government’s contribution will then reduce to 70% in July and 60% in August and September respectively. Employers will be expected to contribute the additional 10% in June and 20% in August and September.

The extension will provide welcome relief for employers and employees, who may be concerned about the months ahead as businesses reopen as part of the government’s roadmap out of lockdown.

Stevi Hoyle

Author Stevi Hoyle

More posts by Stevi Hoyle