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UK Budget 2021: Furlough Scheme extended until September 2021

3 March 2021 | David Widdowson
People wearing face masks on commute

The Chancellor, Rishi Sunak, has announced as part of the Budget 2021 an extension of the furlough scheme until the end of September 2021.

“Our Covid support schemes have been a lifeline to millions, protecting jobs and incomes across the UK. There’s now light at the end of the tunnel with a roadmap for reopening, so it’s only right that we continue to help business and individuals through the challenging months ahead – and beyond.”

Rishi Sunak, 2021

The Job Retention Scheme has received praise for its success in slowing down/preventing job losses. The scheme pays 80% of employees’ wages for hours they cannot work during the pandemic. Sunak has confirmed that businesses will need to contribute to their employees’ pay, starting with a 10% contribution in July and 20% in August and September. 

There has been some debate as to whether this announcement should have been made sooner and how businesses will cope with expected contributions and the end of the scheme in September. We have covered some strategies that businesses may wish to employ as alternatives to redundancy following the furlough scheme’s closure in September in our recent article

We have been supporting our clients with advice, strategies and communications throughout the pandemic. If you have been impacted by the unprecedented Coronavirus (COVID-19) outbreak, or if you need practical guidance on the best ways to maintain your business operations please get in touch.

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The author

David Widdowson
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