Furlough scheme extended to end of April 2021

On 17 December, Chancellor Rishi Sunak announced that the furlough scheme – which had previously been extended to the end of March 2021 – has now been further extended until the end of April 2021. This extension will apply across the UK.

Employees who are part of the scheme will continue to receive 80% of their usual salary for hours not worked, up to a maximum of £2,500, and can be furloughed on a part-time or full-time basis. The Chancellor has also confirmed that, for the duration of the furlough scheme’s extension in 2021, the Government will continue to contribute 80% towards wages, with the intention of giving businesses and employees across the UK certainty into the New Year. Employers will continue to be liable only for National Insurance and employer pension contributions which, for the average claim, accounts for approximately 5% of total employment costs.

The eligibility criteria for the UK-wide scheme will remain unchanged and these changes will continue to apply to all Devolved Administrations.

These changes come ahead of the Budget, which the Chancellor has confirmed will take place on 3 March 2021. This is a complex situation so we advise anyone with questions to seek independent advice on what is best for their family.

Impact on financial support with childcare

For more information on how the furlough scheme interacts with financial support with childcare, read our earlier article here.

Find out more

Further information on the extended scheme is available here.

We would encourage any individuals or employers wishing to find out what financial support they may be entitled to, to contact our Family Benefits Advice Service for free, impartial and confidential advice on 028 9267 8200 or email hello@employersforchildcare.org