Furlough end date: Will furlough be extended? ‘Don’t rule anything out’

Furlough: UK government 'protected' Scottish jobs says Ross

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The Coronavirus Job Retention Scheme (CJRS) has allowed employers to place employees on furlough during the pandemic. Many have praised the scheme for helping businesses to stay afloat, while also allowing employees to continue earning during this period of uncertainty. The scheme has now been in place for more than a year and it is scheduled to remain for several more months.

When does furlough end?

In the Budget announcement in March, Rishi Sunak announced the furlough scheme would be extended until September.

However, the amount of support the Government offers through the scheme will be tapered off over the coming months.

In May and June, the Government will pay 80 percent of wages, capped at £2,500 per month.

In July, the Government will pay 70 percent of wages, capped at £2,187.50 per month.

However, the amount of Government support will drop even further for August and September.

For the final two months of the scheme, the Government will only pay 60 percent of wages, capped at £1,875 per month.

Employers will still be expected to pay their staff at least 80 percent of their usual wages, capped at £2,500 per month.

Will furlough be extended?

Furlough could be extended in the future, depending on the UK’s coronavirus situation this autumn.

Lucy Cohen, co-founder of Mazuma, told Express.co.uk not to “rule anything out” on the topic of extending the furlough scheme.

Ms Cohen said: “As we’ve seen before, it isn’t uncommon for the Government to have to go back on their initial statements and promises because of the volatility of the virus.

“The end of restrictions and the end of furlough are both very much dependent on everyone following the rules and no unexpected surprises, such as new variants.

“We should all be prepared for the potential of these restrictions, and therefore furlough, to go on a lot longer than expected.”

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What circumstances could mean furlough is extended?

If another wave of Covid cases hits the UK, the circumstances could see the need for furlough to return.

Ms Cohen added: “If the country was to see another spike in COVID-19 cases and deaths, the Government would have no option to shut the UK down once more.

“To ensure business casualties are kept to a minimum and our economy remains afloat, support measures would have to continue including furlough and SEISS.”

Other employment experts also agree the furlough scheme could be extended in the future if businesses are unable to trade effectively due to lockdown restrictions.

Sam Greenhalgh, employment lawyer at Birketts, told Express.co.uk: “It is possible that the furlough scheme could be extended past September 2021.

“We have seen it extended a number of times since it was first introduced.

“Crucial to consideration of any extension will be the extent to which businesses are able to trade without restriction from October 1, 2021.

“If restrictions are still in place in September 2021 and businesses are consequently unable to trade fully, then the furlough scheme may be a lifeline that the Government chooses to extend.”

Got a question about furlough or the Self-Employment Income Support Scheme (SEISS)? Email [email protected] and we’ll do our best to get experts to comment on your question in an article.

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