Furlough set to continue into the autumn

The furlough scheme is expected to be extended to the end of September.

The Chancellor is expected to announce during the Budget that employees will be guaranteed 80% of their salary for three months after the UK Government hopes all pandemic restrictions will be removed.

Business and business groups have long called for such and extension to protect jobs and allow them to plan for the coming months. The scheme is currently due to end in April.

‘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,’ says the Chancellor.

Under the new plan, companies will be expected to pay for 10% of a furloughed worker’s wages in July, rising to 20% in August and September. 

In addition, cash grants under the self-employment income support scheme (SEISS) will now be available to those who became self-employed during 2019-20. The Government had been criticised for failing to provide support for people who had started new companies.

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