Chancellor Rishi Sunak has extended the Coronavirus Job Retention Scheme (CJRS) until the end of April 2021. Businesses negatively affected by the coronavirus (COVID-19) can make use of the CJRS until the end of April. So far, it has supported 9.6 million jobs across the UK, with more than one million businesses using it.
Employees on furlough will continue to get 80% of their salary for hours not worked, up to £2,500/month. The state will pay 80% of salaries for hours not worked until the end of April. Employers will only be required to pay wages, National Insurance Contributions (NICs) and pension contributions for hours worked, plus NICs and pensions for hours not worked.
- Employers across the UK can use the scheme – even if they haven’t before.
- You DON’T need to have been furloughed before to take part.
- You CAN work part-time while on furlough.
- You can’t work for your employer during the hours you’re furloughed.
- Employees on all types of contract can take part
Additionally, Mr Sunak stated that he is extending COVID-19 business loan schemes until the end of March 2021. Businesses will be given until the end of March to access the Bounce Back Loan Scheme (BBLS), Coronavirus Business Interruption Loan Scheme (CBILS) and the Coronavirus Large Business Interruption Loan Scheme (CLBILS). These schemes had been due to close at the end of January. To date, they have already provided more than £68bn in guaranteed loans to firms.
The Chancellor also confirmed that the 2021 Budget will be delivered on 3 March and will outline the next phase of the government’s plan to combat COVID-19 and protect jobs.
Commenting on the announcements, the Chancellor said: ‘Our package of support for businesses and workers continues to be one of the most generous and effective in the world – helping our economy recover and protecting livelihoods across the country. We know the premium businesses place on certainty, so it is right that we enable them to plan ahead regardless of the path the virus takes, which is why we’re providing certainty and clarity by extending this support’
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