Covid 19 - What you need to know - Furlough Scheme to be extended to end of September 2021
In his budget this afternoon, the Chancellor will announce that the Coronavirus Job Retention Scheme, more commonly referred to as the ‘Furlough’ scheme, will be extended until end of September 2021. The scheme was first introduced in March 2020 and was due to wind down 3 months later.
Employers will be expected to pay 10% towards the hours their staff do not work in July, increasing to 20% in August and September, as the economy is hoped to re-open in line with the ‘roadmap’ outlined recently by the Prime Minister.
Support for self-employed workers will also be announced by the Chancellor. A further tranche of grants (the 4th such tranche) from the ‘Self-Employment Income Support Scheme’ will be available to be claimed from April, worth 80% of three months' average trading profits up to £7,500.
It is expected that thousands of more people will be eligible for the grants this time, as tax return data for 2019-20 is now available.