On 17 December 2020 the Government announced that the furlough scheme would be extended until the end of April 2021. The Government has confirmed that employers will be able to continue to claim 80% of employee wages for hours not worked (this was due to be reviewed in January). Employers will only be required to pay employee wages, National Insurance Contributions (NICS) and pension contributions for hours worked, as well as NICS and pension contributions for hours not worked.
The Budget has been confirmed for 3 March 2021 in which the Chancellor will set out the next phase of his plan to protect jobs. The furlough extension will now enable businesses to plan for the first few months of the New Year and give employers and employees certainty that they will receive Government support until at least the end of April 2021, by which time we will know what the Budget sets out regarding the support that will be available to business after April 2021.
