The Chancellor announced today, Thursday 05 November 2020, that the Coronavirus Job Retention Scheme will be extended until the end of March 2021 with a review in January 2021.
The Chancellor announced today that the government are to provide a five-month extension of the furlough scheme into Spring 2021.
Details from HM Treasury
- The Coronavirus Job Retention Scheme (CJRS) will now run until the end of March with employees receiving 80% of their current salary for hours not worked.
- Similarly, support for millions more workers through the Self-Employment Income Support Scheme (SEISS) will be increased, with the third grant covering November to January calculated at 80% of average trading profits, up to a maximum of £7,500.
The Chancellor of the Exchequer Rishi Sunak said: ‘I’ve always said I would do whatever it takes to protect jobs and livelihoods across the UK – and that has meant adapting our support as the path of the virus has changed. It’s clear the economic effects are much longer lasting for businesses than the duration of any restrictions, which is why we have decided to go further with our support. Extending furlough and increasing our support for the self-employed will protect millions of jobs and give people and businesses the certainty they need over what will be a difficult winter.’
Image courtesy HM Treasury
Business leaders and industry bodies have welcomed the Chancellor’s announcement including Stephen Phipson, CEO, Make UK who said, ‘The priority right now has to be saving as many jobs as possible and this is a bold and brave move which industry will welcome.’
With many businesses anxious that government support was to end in December this move will be seen as helping the manufacturing industry ready itself for the recovery. However, many businesses have already started restructuring processes and jobs have been earmarked for redundancy so whilst this move is certainly welcome it may prove too late for those jobs already lost.
Further details on this break story can be found on HM Treasury’s website
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