In a statement to the House of Commons earlier today, Chancellor Rishi Sunak told MPs that the furlough scheme would be extended until the end of March, and will continue to pay up to 80% of an employee’s usual salary, up to £2,500.
As part of the scheme, Mr Sunak also made it clear that anyone made redundant after 23rd September can be rehired and put back onto furlough.
Richard Hepburn, Operations Manager at Gorilla Accounting said:
“Today’s government announcement has offered a lot of reassurance to millions of people across the UK, as the furlough scheme had been due to end in December. The extension until the end of March is welcome news, as the end of furlough would have no doubt affected millions of employees, the self-employed and businesses across the country.
“With 80% of income continued to be covered by the government, there is some breathing space for employees and businesses despite the stress the second lockdown is set to put on the UK economy. It was hugely important to people across the country that the government provided an adequate level of support, and through this extension they have gone some way to achieving that.”
Alongside the furlough announcement, Mr Sunak also laid out plans for billions of pounds of other support for the economy, with real focus being put on ensuring the self-employed are properly backed.
Through the Self-Employment Income Support Scheme, the government will cover up to 80% of average trading profits up to a maximum of £7,500 between November and January.
