Furlough scheme extended until 30 April 2021

The government has announced that the Coronavirus Job Retention Scheme, known as the furlough scheme, will be extended until 30 April 2021. This is a one month extension to the planned end date of 31 March 2021.

The government will continue to pay 80% of the salary of employees for hours not worked until the end of April 2021. Employers will be required to pay National Insurance Contributions and pensions for hours not worked. The government had previously said that it would review the contribution rates of employers at the end of Jan 2021, but this new extension and confirmation of the contribution rate should provide more certainty to employers in the New Year.

This news may have an impact on workforce planning, budgets and any proposed redundancies. 

At the time of writing no government guidance or Treasury Direction have been issued and this information is based on the information provided on the government website.