The furlough scheme will be extended until the end of September, the chancellor is to announce in today’s Budget.

Published: 03/03/2021

Written by Curwens Solicitors

Rishi Sunak has confirmed that the extended scheme will help millions through "the challenging months ahead", as the country plans life after lockdown.

In additional welcome news, some 600,000 more self-employed people will also be eligible for government help as access to grants is widened for those who previously were not eligible. This will be worth 80% of three months' average trading profits, capped at £7,500. To access the grants, claimants have had to show their 2018-19 tax returns - but this has meant hundreds of thousands of newly self-employed people have been excluded from help which will no longer be the case as tax data for 2019-20 is now available.

What level of support will there be via furlough?

(i) Furloughed employees will continue to receive 80% of their current salary, capped at £2,500 a month, until the scheme ends at the end of September 2021.

(ii) From July employers will be asked for a contribution of 10%;

(iii) From August and in September employers will be asked for a contribution of 20% in August and September towards the hours their staff do not work.

This is welcome news from many industry sectors who will be adversely impacted by the phased lifting of restrictions in the roadmap outlined by the Prime Minister Boris Johnson. There are many sectors which will see a slow return to trading profits that they were used to and as consumer and public confidence remains to be seen, especially in the retail and hospitality sectors, it is expected that these sectors will see a slower return to business even when they are allowed to open.

We will update the information as and when it becomes available.

The information is correct at the time of writing.

Please note that our briefings are for informational purposes only, and do not constitute legal advice.

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testimonials

Katie from North London

Mike from Palmers Green

The Thompsons from Finchley

John from Harlow

Pritti from Surrey

William from London

I would like to thank you Amanda for all your support during this process. I felt very pleased you were my solicitor, you gave me confidence and reassurance, I felt in very safe hands.

Anonymous

HR Director, Milbridge Group PLC

I just wanted to say thank you for all of your help with getting our office lease done. Bradley, Sandra and Sarah were so responsive and it was a pleasure working with you.

Clinton Gomer, Energy House Digital

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