What is the Job retention scheme (furlough)?

The furlough scheme was introduced in March 2020 to help employees whose job was affected by the pandemic and who were at threat of redundancy as a result of the coronavirus (Covid-19). The scheme was due to finish at the end of October 2020, but has now been extended until the end of September 2021. The Job Support Scheme which was due to replace the Job Retention Scheme has now been postponed. 

Under the extended Job retention scheme the government will pay 70% of employee wages up to a cap of £2,187.50. Employers will have to top up employees wages to 80% and cover National Insurance Contributions (NICs) and pensions.

Further information on the furlough scheme in England can be found on the gov.uk website. Rules for the other nations may differ please refer to additional information for ScotlandWales and Northern Ireland.

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