The Chancellor announced yesterday (17 December 2020) that the already extended Coronavirus Job Retention Scheme (CJRS) will be extended once again until 30 April 2021.
Previously, the level of the government’s contribution was to be reviewed in January 2021, sparking concerns that this might be reduced. However, the review has taken place earlier to allow businesses to plan for 2021 and it has been confirmed that the government’s contribution will remain at the current level.
Employers will remain able to claim 80% of an employee’s wages, up to the cap of £2,500 per month, for hours not worked.
Employers will still be required to pay national insurance contributions and employer pension contributions on furlough pay.
The eligibility criteria for the CJRS remains unaffected by the government’s additional extension. By way of brief re-cap:
It has also been announced that there will be an extension to the government-guaranteed Covid-19 business loan schemes until the end of March 2021.