The Job Retention (furlough) Scheme was originally established in March 2020 to assist organisations with retaining staff through business restrictions put in place as a result of the coronavirus pandemic. Since then, it has been extended numerous times in response to the developing situation with the virus. Now, with plans for reopening businesses over the next few months being announced across the UK, the government has confirmed that the scheme is to be extended again, this time until 30th September 2021.
As before, furloughed workers will still get 80% of their wages for the time in which they do not work, subject to a monthly maximum. However, from July, the government will start reducing their contribution to the scheme, similar to the way they started to phase it out last year before it was extended at the end of October.
From July 2021, the government will contribute 70% of wages for unworked hours, with organisations asked to provide the remaining 10%. In August and September 2021, they will contribute 60%, meaning organisations must provide 20%.
If all goes to plan, this news means that the furlough scheme will remain an option for eligible organisations even after the lifting of all lockdown restrictions in England on 21st June, something that may occur sooner in Scotland and Wales but has yet to be confirmed. Presumably, this is to assist organisations in gradually working towards pre-pandemic normality whilst also allowing for any delays to England’s roadmap out of lockdown that may occur if the government’s tests for easing restrictions, at any stage, are not passed.
Write a Comment