The Coronavirus Job Retention Scheme – or furlough – has been extended until March 2021. This means that the Job Support Scheme, which was scheduled to come in earlier this month has been postponed until the furlough scheme ends.
This extended Job Retention Scheme will operate as the previous scheme did, with businesses being paid upfront to cover wages costs. There will be a short period when the government needs to change the legal terms of the scheme and update the system and businesses will be paid in arrears for that period.
Employers small or large, charitable or non-profit, are eligible for the extended Job Retention Scheme. Businesses will have the flexibility to bring furloughed employees back to work on a part-time basis or furlough them full-time, and will only be asked to cover National Insurance and employer pension contributions which, for the average claim, accounts for just 5% of total employment costs.
More information is available here.