C19 Business News Update: Furlough Extension

6 November 2020
furlough extension update

Coronavirus Job Retention Scheme – Furlough Extension:

On 31st October is was announced that the Coronavirus Job Retention Scheme, otherwise known as Furlough Scheme, had been extended 2nd December in line with the new lockdown restrictions.

Following a further announcement made by the Chancellor on 5th November the Furlough scheme has now been extended further to the end of March 2021. The scheme is set to pay 80% of a person’s wage up to £2,500 a month and is set to be reviewed in January as to whether to economic circumstances are improving enough to ask employers to contribute more.

It was also confirmed that the Job Retention Bonus will no longer be paid in February 2021, as CJRS will be available at that time. An alternative retention incentive will be put in place at the appropriate time.


furlough scheme to support businesses


Here is what we know so far:

  • Employers do not need to have used the scheme previously.
  • Employers across the UK can claim, whether their businesses are open or closed.
  • Employers can claim for employees who were employed and on their PAYE submission on or before the 30th October 2020.
  • Employees do not need to have been furloughed under the CJRS previously.
  • ‘Flexible Furlough’ is available for employees that have been furloughed on a part-time basis.
  • Anyone made redundant after 23 September can be rehired and put back on furlough, so long as there were employed on or before 23rd September.
  • Employees on furlough will continue to get 80% of their salary for hours not worked, up to £2,500 a month. The employers must still cover national insurance and pension contributions.
  • As with the current CJRS, employers are still able to choose to top up employee wages above the scheme grant at their own expense if they wish.

Its important to note that although the scheme has been extended to 31st March 2021 it is set to be revised in January 2021, which will likely see further revisions to the support available as the situation develops.

Further information and specifics can be found here https://www.gov.uk/government/publications/extension-to-the-coronavirus-job-retention-scheme/extension-of-the-coronavirus-job-retention-scheme

If you have any questions about the furlough extension or any of the support available to you please contact us and we will be happy to help. 

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