The Job Retention Scheme known as the “Furlough Scheme” has been extended until the end of April 2021, the HM Treasury announced today. The UK government will continue to pay 80% of the salary of employees for hours not worked until the end of April 2021.
The eligibility criteria remain unchanged, while employers will only be required to pay wages, National Insurance Contributions (NICS) and pensions for hours worked, as well as NICS and pensions for hours not worked.
According to the Office for National Statistics, the number of workers on furlough has doubled and last month 15.5% of the UK workforce received wage subsidies.
The furlough scheme has cost £46.4bn while the total number of jobs furloughed remains at its highest with 9.9 million.
Coronavirus Impact on Business
The Business Impact of Coronavirus (COVID-19) Survey of the Office for National Statistics (ONS) reported that across all industries, of businesses currently trading 50% experienced a decrease in turnover, 33% preserved the same turnover, and 9% experienced an increase in turnover.
Accommodation and food services (79%), arts, entertainment and recreation (72%), education (58%), and administrative services (54%) experienced the highest decrease in turnover.
Business Loan Schemes Extended
The government-guaranteed Covid-19 business loan schemes have been extended until the end of March next year to support the business.
The UK government plans to launch in January 2021 a small business loan scheme to guarantee 80 per cent of loans up to £10m per company over a six-year lending period. This scheme will replace the existing coronavirus business support scheme.
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