Furlough Extension

Furlough has been extended until March 2021. Read about the extension in our recent update here.


With the Furlough Scheme to close in October, details of an extension to the Scheme have been released.

The scheme allows staff to remain contractually employed in their roles while not actively working. 80% of employee wages are paid by the government, while the last 20% is optionally contributed by the employer.

The scheme started in March as a means to prevent workers from losing their jobs through redundancies as the economy ground to a halt, all while keeping them safe at home to stop the spread of the virus.

Chancellor Rishi Sunak has stated that furloughed staff will be able to return to work from July, on a part-time basis. It is being left to individual businesses to decide the exact hours their employees will work on their return.

Who Pays What

As indicated earlier this month, the subsidy will taper off from August, with businesses expected to begin paying a greater share of their staff salaries. This will start with covering National Insurance and pension contributions.

From September the government will cover only 70% of salaries, with the initial cap of £2,500 dropping to £2,190. From October, it will pay 60% of salaries with a cap of £1,875. Employers will make up the shortfall to get salaries back to 80% of pre-Covid lockdown levels.

You can access the government gateway now to claim for the scheme. You will need your Government Gateway user ID and password to log in.

Claim now

Resources to Help Your Business

If your business has been affected by coronavirus we have plenty of resources from our cashflow template to all the major funding updates over the past weeks that may help guide you in getting back on track.

Visit our resource centre now where you can sign up to get all the latest advice and support.

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