Budget 2021 and Furlough Extension
With today’s 2021 Budget announcement by Chancellor Rishi Sunak, a number of economic plans have been announced, including another four-month extension of the Furlough Scheme to the end of September.
The Job Retention Scheme, which had been due to finish at the end of April, will now be extended to the end of September.
The announcement confirms the Government will continue covering 80% of workers’ salaries for the hours they are not working, up to a maximum of £2,500 a month, with employers asked to pay pension and national insurance contributions. Employers are still expected to pay workers normally for the hours worked.
Today’s budget confirms from July businesses will be expected to contribute 10% of employees’ wages for the hours not worked, increasing to 20% in August and September.
In addition to the Job Retention Scheme changes, the Chancellor announced a ‘help to grow’ scheme offering free MBA-style management training for up to 130,000 leaders of SMEs, and a doubling of the incentive payments for businesses taking on new apprentices of any age to £3,000.
To discuss the support hr inspire can provide you with in relation to any of the above changes, please do get in touch.
