In an announcement today, Chancellor Rishi Sunak confirmed the Furlough Scheme will be extended until the end of March 2021. The government will pay employees, who are on the Furlough Scheme, 80% of their wages however, employers are still expected to make contributions to National Insurance and pensions for hours not worked. The scheme is available to all parts of the UK if they need to lockdown within this time.
The news comes after England was placed into a second national lockdown for four weeks until December. With concerns over the economical impact of the second national lockdown and potential job losses, the Furlough Scheme has been extended to try and protect jobs especially in those areas worst hit by the coronavirus pandemic, such as the hospitality and leisure sectors. The chancellor says this support will ‘protect millions of jobs.’
The Self-Employment Income scheme has also been updated with a third grant covering a 3-month period from 1st November 2020 until 31st January 2021. Self-employed workers will now be able to claim a taxable grant of 80% of 3 months average trading profits up to the value of £7500 in total, which will be paid in a single instalment. This has increased from the 55% previously announced. The Self-Employment Income scheme will be reviewed in January 2021, upon reviewing the economic circumstances.
