Everything you need to know about the new furlough extension until March 2021

Rishi Sunak today announced an extension to the furlough scheme, as well as more support for self-employed workers.

The five-month extension of the furlough scheme will see it continue into Spring 2021, the Chancellor announced today, Thursday November 5th.

The government’s Coronavirus Job Retention Scheme (CJRS) will now run until the end of March, with employees receiving 80% of their current salary for hours not worked.

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Mr Sunak also said there will be support for millions of self-employed workers, through the Self-Employment Income Support Scheme (SEISS) which is set to be increased.

The third available grant will cover from November to January, and will be calculated at 80% of average trading profits, up to a maximum of £7,500.

Mr Sunak said: ”I’ve always said I would do whatever it takes to protect jobs and livelihoods across the UK – and that has meant adapting our support as the path of the virus has changed.

“It’s clear the economic effects are much longer lasting for businesses than the duration of any restrictions, which is why we have decided to go further with our support.

“Extending furlough and increasing our support for the self-employed will protect millions of jobs and give people and businesses the certainty they need over what will be a difficult winter.”

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As it stands, there are currently no employer contributions to wages for hours which are not worked, with employers only asked to cover National Insurance and employer pension contributions for any hours not worked.

This means that for an average claim, that will account for 5% of total employment costs – or roughly £70 per employee per month.

The government says the CJRS extension will be reviewed again in January, to see whether the economic situation has improved enough for employers to be asked to increase their contribution to wages.

The government also announced:

• cash grants of up to £3,000 per month for businesses which are closed worth more than £1 billion every month
• £1.1 billion is being given to Local Authorities, distributed on the basis of £20 per head, for one-off payments to enable them to support businesses more broadly
• plans to extend existing government-backed loan schemes and the Future Fund to the end of January, and an ability to top-up Bounce Back Loans
• an extension to the mortgage payment holiday for homeowners
• up to £500 million of funding for councils to support the local public health response.

You can find additional info and keep up to date on the Government website here.