Chancellor extends furlough scheme to March

UK chancellor, Rishi Sunak, has extended the furlough scheme until the end of March 2021, in a bid to protect millions of jobs during the second wave of the pandemic.  

He explained: “It’s clear the economic effects are much longer lasting for businesses than the duration of any restrictions, which is why we have decided to go further with our support.”

Under the Coronavirus Job Retention Scheme (CJRS) employees receiving 80% of their current salary for hours not worked. Employers will only be asked to cover National Insurance and employer pension contributions for hours not worked. For an average claim, this accounts for just 5% of total employment costs, or £70 per employee per month.

In addition, millions more workers through the Self-Employment Income Support Scheme (SEISS) will be supported, with a third grant covering November to January calculated at 80% of average trading profits, up to a maximum of £7,500.