The UK furlough scheme has been extended until the end of April next year with the British government continuing to contribute 80 per cent towards wages, giving businesses and employees across the country certainty into the New Year, according to chancellor of the exchequer Rishi Sunak, who recently said he would extend the government-guaranteed COVID-19 business loan schemes until March end.
The move will ensure firms can access the support they need through continuing economic disruption, a government press release said. These changes come ahead of the budget, which the chancellor has confirmed will take place on March 3 next year. This will deliver the next phase of the plan to tackle the novel coronavirus and protect jobs.The UK furlough scheme has been extended until April end with the British government continuing to contribute 80 per cent towards wages, giving businesses and employees certainty into the New Year, according to chancellor of the exchequer Rishi Sunak, who recently said he would extend the government-guaranteed COVID-19 business loan schemes until March end.#
So far, the Coronavirus Job Retention Scheme (CJRS) scheme has protected 9.6 million jobs across the country, with more than one million businesses accessing loans to help them through the crisis.
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.
“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,” Sunak said.
“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,” business secretary Alok Sharma said.
The government will continue to pay 80% of the salary of employees for hours not worked until the end of April. Employers will only be required to pay wages, national insurance contributions (NICS) and pensions for hours worked; and NICS and pensions for hours not worked.
The eligibility criteria for the UK-wide scheme will remain unchanged and these changes will continue to apply to all Devolved Administrations.
Businesses will also be given until the end of March to access the Bounce Back Loan Scheme, Coronavirus Business Interruption Loan Scheme, and the Coronavirus Large Business Interruption Loan Scheme. These had been due to close at the end of January.
The schemes have already provided over £68 billion in guaranteed loans, and helped to keep afloat business in all sectors of the UK economy who have been impacted by coronavirus.
The furlough and loan schemes are part of the government’s wider plan to support, create and protect jobs through its plan for jobs.
Fibre2Fashion News Desk (DS)
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