Chancellor Extends Furlough and Loan Schemes

THE FURLOUGH SCHEME has been extended until the end of April 2021, the Chancellor has announced today.

Rishi Sunak also confirmed he would be extending the government-guaranteed Covid-19 business loan schemes for applications until the end of March.

These changes come ahead of the Budget, which the Chancellor has confirmed will take place on 3 March 2021.

So far, the Coronavirus Job Retention Scheme (CJRS) scheme has paid up to 80% of the wages of 9.6 million workers across the UK. More than one million businesses have accessed loans to help them through the crisis.

CJRS review

Currently, employers contribute National Insurance Contributions (NICS) and pensions for both the hours worked and not worked, if employees are on a part-time furlough.

The Chancellor said he would review the employer contribution element of the CJRS in January and the next phase of support. This will be ahead of the last date to provide the required 45-day redundancy notice period, ending before April.

The eligibility criteria for the UK-wide scheme will remain unchanged and these changes will continue to apply to all Devolved Administrations.

Businesses will also be given until the end of March to access the Bounce Back Loan Scheme, Coronavirus Business Interruption Loan Scheme, and the Coronavirus Large Business Interruption Loan Scheme. These had been due to close at the end of January.

The schemes have provided over £68 billion in guaranteed loans to keep afloat business in all sectors of the UK economy.

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