The Coronavirus Job Retention Scheme which was introduced in March to prevent mass redundancies has been extended as England enters second lockdown on Thursday.
The furlough scheme has paid 80% of the wages of millions of people unable to work due to the coronavirus pandemic, up to £2,500 a month since its introduction. This scheme was due to be replaced by the Job Support Scheme, however it has now been extended by a further month.
Employees won’t notice any difference in their wage packet, but the state will now pay the full 80% instead of employers having up to top up their employees’ wages by 20%, with the government paying 60%.
The furlough scheme will end in December when England comes out of lockdown. Regions will then be classed into tiers as before, based on their coronavirus risk level, and the Job Support Scheme will begin.
Under that scheme, if a businesses has to close due to local restrictions, workers will be paid 67% of their wages – up to a maximum of £2,083.33 a month. Employers won’t have to pay towards an employee’s salary.