Furlough was introduced back in March to prevent mass redundancies due to coronavirus.
In recent months, firms have had to top up furloughed wages by 20%, with the government paying 60%. Now, the state will put in the full 80%, with the employer only covering pension and national insurance contributions.
To be eligible for this extension, employees must have been on the payroll by 30 October 2020, but they don’t need to have been furloughed before. Employers can also continue to bring back employees part-time, and furlough them for the rest.
What else is available to employers?
- Up to £3,000 per month under the Local Restrictions Support Grant if their premises is forced to close
- £1,000 for every furloughed employee kept on until at least the end of January
- £1,500 for every out-of-work 16-24 year-old given a ”high quality” six-month work placement
- £2,000 for every under-25 apprentice taken on until the end of January, or £1,500 for over-25s
What is available for the self-employed?
- A grant available to self-employed people affected by coronavirus has been doubled to 40% of profits, with a maximum grant of £3,750 over a three-month period.
- Mortgage payment holidays extended for up to 6 months