Chancellor Extends Furlough Scheme To March 2021

The Chancellor extends the Furlough Scheme until March 2021, bringing relief to businesses nationwide...

The Chancellor has today, (5th November), announced an increase in financial support for workers as new lockdown restrictions come into force in England, extending the 80% furlough scheme, originally due to close on the 31st October, (Then extended to early December, to now end at the end of March 2021). Employers will only be asked to cover National Insurance and employer pension contributions for hours not worked, which equates to roughly 5% per employee.

The self employed are also being supported by the government, with the next income support grant for November to January increasing to 80% of average profits up to £7,500.

The changes were announced on the first day of the 2nd English lockdown, and the reason given for the extension, stated by Chancellor, was that he needed to make "rapid adjustments" to the government's economic response to the COVID-19 pandemic because of how the virus has spread.

This does provide a lifeline for businesses to be able to keep staff on the books, and to be able to keep the wold from the door. With the latest lockdown restrictions, many businesses, many of which are pubs and restaurants, are hoping to re-open in early December, and although restrictions may have lifted, they will still need to find the money to be able to restock and replenish, and build up the business again, and so having the back up of knowing they don't have to bring back all staff, all at once, will be a big relief.

On a personal note, being I'm now on part time furlough, it does reassure me, that although no job is safe these days, having this kind of financial help, the business I work for, are less likely to end my employment in December, and gives a little more job security until the Spring...