Millions of jobs protected as furlough extended until September

Tuesday, 2 March 2021 22:00

Support for millions of workers to continue as UK-wide furlough scheme extended until end of September Employees will continue to receive 80% of current salary until the scheme ends, with employers asked for a small contribution from the end of July Chancellor also set to announce that more than 600,000 people, including the newly self-employed in 2019-20, will now be eligible for government support Millions...Request free trial

Support for millions of workers to continue as UK-wide furlough scheme extended until end of September
Employees will continue to receive 80% of current salary until the scheme ends, with employers asked for a small contribution from the end of July
Chancellor also set to announce that more than 600,000 people, including the newly self-employed in 2019-20, will now be eligible for government support

Millions of people across the UK will continue to be supported through the next stage of the pandemic with an extension of the government’s furlough scheme, the Chancellor is expected to announce at tomorrow’s Budget.

Rishi Sunak is set to extend the Coronavirus Job Retention Scheme (CJRS)– which has protected 11.2 million jobs since the start of the pandemic until the end of September.

This means businesses and individuals will be supported through the roadmap and beyond.

And in a major improvement in access to the self-employed scheme, he is also set to announce that more than 600,000 people, many of whom became self-employed in 2019-20, will now be able to claim direct cash grants under the Self-Employment Income Support Scheme (SEISS).

Alongside the government’s Plan for Jobs, the injection of additional support will give businesses and hard-working families the certainty they need as we enter the next stage of our recovery.

Rishi Sunak, The Chancellor of the Exchequer, said:

“Our Covid support schemes have been a lifeline to millions, protecting jobs and incomes across the UK.

“There’s now light at the end of the tunnel with a roadmap for reopening, so it’s only right that we continue to help business and individuals through the challenging months ahead - and beyond.”

As part of the CJRS extension, there will be no change to the terms for employees and they will continue to receive 80% of their salary for hours not worked until the scheme ends.

As restrictions are eased and the economy begins to reopen, businesses will be asked to contribute alongside the taxpayer to the cost of paying their employees for hours not worked.

The government will ask for a small contribution of just 10% in July and 20% in August and September towards the hours their staff do not work.

The Chancellor will announce that a fourth SEISS grant will be available to claim from next month worth 80% of three months’ average trading profits up to £7,500 in total.

When the self-employment scheme was launched, it was based on tax returns for 2018-2019, the most recent year for which data was available; meaning it wasn’t possible for the newly self-employed to qualify.

Now this data is available, it means hundreds of thousands more people will be eligible.

The Chancellor will outline further details tomorrow – alongside details of a fifth grant.

The Budget will build on the Government’s Plan for Jobs and the unprecedented £280 billion package of support that has protected the lives and livelihoods of the British people.

This includes the furlough scheme, a strengthened welfare safety net, business grants, loans and mortgage holidays as well as measures to support people finding new jobs such as the Kickstart and Restart Scheme.

Notes to editors

Photographs of the Chancellor’s preparations for Budget are available here: https://www.flickr.com/photos/hmtreasury/

CJRS:

11.2 million jobs cumulatively have been protected through the furlough scheme
Between now and the 30th June the government will continue to pay 80% of wages up to a cap of £2,500 monthly for hours the employee does not work, employers will continue to pay employer National Insurance Contributions (NICs) and pension contributions.
From 1st July, the Government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee is on furlough. Employers will need to make an additional contribution of 10% towards the cost of paying for unworked hours and continue to pay employer NICs and pension contributions. Employees will continue to receive 80% of their wages up to a cap of £2,500 monthly, for time they are furloughed.
From 1st August, the Government will pay 60% of wages up to a cap of £1,875 monthly for the hours the employee is on furlough. Employers will need to contribute 20% towards the cost of paying for unworked hours and continue to pay employer NICs and pension contributions.
As under the current CJRS, flexible furloughing will be allowed in addition to full-time furloughing, so employers can bring employees back to work for any amount of time and any shift pattern, while still being able to claim CJRS for hours not worked.

SEISS:

2.7 million self-employed people have been supported by SEISS
People who filed 2019-20 tax returns - which is the most up to date information HMRC holds for self-employed individuals – may now be eligible for the scheme.