Furlough scheme extended until March

The government has announced that its furlough scheme, designed to protect jobs during the Covid-19 pandemic, will be extended until March next year.

The programme, which covers a majority of the wages of employees who cannot work due to social distancing restrictions, had initially been scheduled to expire at the end of October. This was extended until December with the announcement of a new national lockdown beginning this week, and shortly afterwards extended until March.

Eligible employees will continue to receive 80% of their usual salary for hours not worked, up to a maximum of £2,500 per month.

Applications will open for claims on 11th November and claims for November must be submitted by 14th December, with all subsequent claims by the 14th of each month.

Neither the employee or the employer needs to have previously been furloughed or made a claim under the CJRS to be eligible, however, they must have been employed and on the company’s PAYE payroll on 30th Octobee, and any employees who were made redundant after 23rd September (the day before the Job Support Scheme was introduced) can be re-employed and furloughed under CJRS.

The government also stated that despite the extension, it still intends to lift the national lockdown on December 2, as originally planned.

Adam Marshall, director general of the British Chambers of Commerce, said: "A further extension of the furlough scheme and more generous grants for the self-employed are important steps in protecting jobs and providing certainty for our business communities beyond the immediate shock of a four-week lockdown.

"These changes give businesses significant reassurance over an uncertain winter, but many will understandably still wish for the government to give a clearer view of the road ahead. Government must set out longer-term measures over the next 12 months to give firms greater certainty and confidence to plan proactively, rather than to react to changes in support from week to week."

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