THE furlough scheme has been extended until the end of April 2021, the UK Government has announced.
Chancellor Rishi Sunak confirmed the government will continue to contribute 80% towards the wages (up to £2,500) of furloughed workers. Mr Sunak also confirmed that the government-guaranteed Covid-19 business loan scheme would be extended until the end of March.
Mr Sunak said, “Our package of support for businesses and workers continues to be one of the most generous and effective in the world – helping our economy to recover and protecting livelihoods across the country.
“We know the premium businesses place on certainty, so it is right that we enable businesses to plan ahead regardless of the path the virus takes, which is why we’re providing certainty and clarity by extending this support, as well as implementing our plan for jobs.”
UK Government business secretary, Alok Sharma, added, “While our loan schemes have provided a vital lifeline to millions of firms across the country, we know that business owners need additional certainty as we head into the new year. Extending government-backed loan schemes will give companies right across the UK the finance they need to support, protect and create jobs as we build back better from the pandemic.”
The chancellor said he would review the employer contribution element of the CJRS in January, but decided to bring this forward to allow businesses to plan ahead for the remainder of the winter and the New Year.
