The government will continue to keep paying 80 percent of furloughed workers’ wages until September 2021, as some industries will remain closed until June 21.
The Job Retention Scheme - otherwise known as furlough - has saved millions of jobs during the pandemic.
Since the country was plunged into the first national lockdown in March 2020, the government has paid workers using the Job Retention Scheme up to £2,500 a month.
While the government contributes 80% towards pay packets, employers are then able to choose whether to pay an extra 20 percent wage top up - but they do not have to.
The programme was scheduled to finish at the end of June 2020, before being extended another five times.
The deadline for furlough was expected to stop at the end of April 2021 but the chancellor, Rishi Sunak, pushed it back in March when he revealed his 2021 budget and a new flexible furlough arrangement will come into play from 1 July.
So when will the furlough scheme payments stop and who can still claim?
When will furlough be extended to?
Mr Sunak has extended the furlough scheme until later this year.
Furlough is now extended until the end of September 2021, with employers asked to contribute to workers’ salaries from July, as the economy reopens.
Those on the Job Retention Scheme will continue to receive 80% of their salary - for hours not worked - until the scheme ends.
Delivering his 20201 Budget in March, Sunak said: “As businesses reopen, we will 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 10% and 20% in August and September.”
Support for self-employed workers will also carry on until September.
The fourth grant under the Self-Employment Income Support Scheme (SEISS) will provide workers, who work for themselves, with three months of support at 80% of average trading profits - from February to April.
For the fifth grant, workers will then continue to receive grants worth three months of average profits from May to September – with the system open for claims from late July.
Who can still claim for furlough?
Employers can still claim furlough payments for their workers, as long as they have been employed through the PAYE system.
From May 2021, claims can be made for employees who were employed from March 2, 2021.
Employers can still furlough employees for any amount of time and any work pattern, known as flexible furlough, or they can fully furlough their workers.
Employers are still able to claim the grant for the hours their employees have not worked.
But pension contributions and National Insurance must still be paid for.
If you are furloughed, you cannot work for the company, even if you want to. However, you can still take part in training, as long as you’re not providing a service or helping towards making money for your employer. If you’re contractually allowed, you can work for another company.
Though, from July 1, businesses are able to bring furloughed employees back to work part-time while still claiming a flexible furlough grant from the government.
Here bosses will pay for days worked while the government will pay the remainder – although it is imperative employers and employees must have a new formal agreement and keep a written record of their flexible furlough arrangement.
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