Furlough scheme extended until April

Furlough scheme extended until April

Chancellor Rishi Sunak has extended the furlough scheme for one month until the end of April 2021.

The government confirmed today (December 17) that it will continue to pay 80 per cent of the wages of workers who have been furloughed.

The chancellor said he would review the employer contribution element of the CJRS in January, but decided to bring this forward to allow businesses to plan ahead for the remainder of the winter and the New Year.

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Mr Sunak also confirmed he would be extending the government-guaranteed Covid-19 business loan schemes until the end of March 2021.

The chancellor also confirmed the next Budget will take place on March 3 and set out the next phase of the plan to tackle the virus and protect jobs.

The government said the extensions will enable businesses to “plan with certainty” and access support in the first few months of the New Year ahead of the further update on wider Covid-19 economic support.

Mr Sunak said: “Our package of support for businesses and workers continues to be one of the most generous and effective in the world – helping our economy to recover and protecting livelihoods across the country.

“We know the premium businesses place on certainty, so it is right that we enable businesses to plan ahead regardless of the path the virus takes, which is why we’re providing certainty and clarity by extending this support, as well as implementing our Plan for Jobs.”

The government had already announced that more support will be available beyond March, through a successor loan scheme. 

More details of the scheme will be announced in due course, with the government providing a further update on wider Covid-19 economic support at the Budget.

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