In his March budget, the Chancellor announced that the Coronavirus Job Retention Scheme will be extended once again.
The headlines for employers are:
- The scheme will be extended until the end of September 2021.
- Until the end of June 2021, contributions towards furloughed staff wages remain as they currently are (i.e. at 80%, up to a maximum of £2,500 per month).
- To coincide with the lifting of the Government’s lockdown restrictions, from July 2021, employers will be required to make a 10% contribution towards staff wages, as Government support will reduce to 70%.
- From August 2021, the Government’s contribution will be reduced further to 60%, with employers required to pay 20%.
- Employers will remain responsible for employer pension and national insurance contributions.
- A chart which explains how the Government’s support will taper from July 2021 can be found here: https://www.gov.uk/government/publications/changes-to-the-coronavirus-job-retention-scheme
Please note this information is provided by way of example and may not be complete and is certainly not intended to constitute legal advice. You should take bespoke advice for your circumstances.