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Furlough scheme to be extended until September 2021

03 Mar 2021

We understand that the Chancellor is set to announce today that the furlough scheme (CJRS) will be extended until 30 September 2021.

This is what we know so far:

  • the government will continue to pay 80% of wages up to a monthly cap of £2,500 until 30 June 2021 and employers will only pay employer National Insurance Contributions and pension contributions until then;
  • as of 1 July 2021, the government will pay 70% of wages up to a monthly cap of £2,500 and employers will pay 10 % of wages, employer National Insurance Contributions and pension contributions;
  • as of 1 August 2021, the government will pay 60% of wages up to a monthly cap of £2,500 and employers will pay 20 % of wages, employer National Insurance Contributions and pension contributions;
  • as under the current CJRS, flexible furloughing will be allowed in addition to full-time furloughing;
  • it is not yet clear what date employees must have been on an employer’s PAYE payroll by in order to be able to be furloughed.
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Further guidance is still awaited but please contact the employment team for further advice on how to utilise the scheme and to discuss furlough agreements and extensions to existing agreements.