The Chancellor Rishi Sunak has today (17 December), somewhat unexpectedly, announced the extension of the furlough scheme for another month. The scheme was scheduled to end on 31 March 2021 but will now run until 30 April 2021.
He will be holding his next budget on 3 March 2021 at which further announcements will likely be made depending on the circumstances the country finds itself in then.
In addition, the government was due to announce expected reductions in the amount of the government contribution to furlough pay in January. Mr Sunak has confirmed that the government will continue to pay 80% (capped at £2,500) through until the end of the scheme.
This is then some positive news for employers just before Christmas, given the announcement of an extension of tier 3 status to large parts of the country, also made today.
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