THE furlough scheme is has been extended until the end of September as part of Rishi Sunak’s Budget.
Under current rules, employees on furlough get 80% of their usual salary, up to £2,500 a month, for hours not worked.
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This is expected to continue until July, when bosses will then be asked to start contributing costs until the scheme finishes in September.
Furlough was due to stop at the end of April, meaning it will last an extra five months beyond this date.
In total, the extension also means furlough will have run for a gruelling 17 months during the coronavirus pandemic.
Some 3.8 million people were on furlough at the end of December, and at its peak last May a whopping 8.9m were on it.
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Why is furlough being extended?
Boris Johnson last week hinted the furlough scheme will continue as he vowed “not to pull the rug” from people who can’t work as lockdown continues.
Announcing his roadmap to free England from lockdown, the Prime Minister said: “For the duration of the pandemic the government will continue to do whatever it takes to protect jobs and livelihoods.”
Speaking ahead of the Budget on March 3, Mr Sunak said it is “only right we continue to help businesses and individuals through the challenging months ahead”.
He added: “Our Covid support schemes have been a lifeline to millions, protecting jobs and incomes across the UK.”
As he delivered the Budget in the Commons, he said: “The furlough scheme will be extended until the end of September, there will be no changes to the terms.
“As businesses reopen, we’ll ask them to contribute alongside the taxpayer to the cost of paying their employees.
“Nothing will change until July, when we will ask for a small contribution of just 10% and 20% in August and September.”
The Chancellor’s vow “to do whatever it takes” to protect jobs and support businesses will add £5billion a month to the pandemic’s £280billion support bill.
But he also warned that the time to get the nation’s books in order is rapidly approaching.
Mr Sunak is gambling on buying some time to allow the economic recovery to strengthen in order to weather the unemployment hit.
The Coronavirus Job Retention Scheme has protected more than 11million jobs since its creation last March, with Mr Sunak promising further help in the “challenging months ahead — and beyond”.
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Can I be made redundant if I’m on furlough?
EVEN though furlough is designed to keep workers employed, unfortunately it doesn’t protect you from being made redundant.
But it doesn’t affect your redundancy pay rights if you are let go from your job amid the coronavirus crisis.
Your employer should still carry out a fair redundancy process.
You will be entitled to be consulted on the redundancy lay-off first and to receive a statutory redundancy payment, as long as you’ve been working somewhere for at least two years.
How much you’re entitled to depends on your age and length of service, although this is capped at 20 years. You’ll get:
- Half a week’s pay for each full year you were under 22,
- One week’s pay for each full year you were 22 or older, but under 41,
- One and half week’s pay for each full year you were 41 or older.
Sadly, you won’t be entitled to a payout if you’ve been working for your employer for fewer than two years.
There should be a period of collective consultation as well as time for individual ones if your employer wants to make 20 or more employees redundant within 90 days or each other.
You are also entitled to appeal the decision by claiming unfair dismissal within three months of being let go.
If you’re made redundant after your company has gone into administration you can claim redundancy pay via Gov.uk.
How is furlough changing?
Furloughed employees are expected to continue to receive 80% of their salary — up to a maximum £2,500 a month — for hours not worked until the scheme ends.
In July, business bosses will be expected to contribute 10% of the cost, increasing to 20% in August and September.
As part of current rules, furloughed workers get their usual full salary for any hours they do work as part of as well.
For hours not worked, employers have to cover National Insurance and pension contributions.
Further details about whether this will still be the case going forward until September are expected to be announced by the Government in due course.
It also isn’t clear if the rules regarding who can claim furlough will change.
At the moment, bosses can only claim for furloughed employees that were employed and on payroll on 30 October 2020.
Workers can also be on any type of contract to be furloughed as part of current rules.
How many times has furlough been extended?
Furlough has already been extended several times since launching in April 2020.
The scheme was initially due to end in May 2020, but was extended until the end of June 2020 and then again until October 2020.
The Chancellor then extended it until December 2020 after England was placed in a four-week national lockdown.
He then changed his mind again and said it would run until the end of March 2021 followed by another extension until the end of April 2021.
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We explain how to claim furlough pay under the current rules.
Parents who can no longer work due to school closures can also be put on the scheme, but it’s up to your employer to decide.
Here are your redundancy rights if you’ve been furloughed.
Budget 2021 – Chancellor Rishi Sunak WILL extend furlough scheme until end of September in boost for workers
