The heavily trailed extension to the furlough scheme was confirmed by Rishi Sunak in his budget announcement today. The scheme will close at the end of September, some nineteen months after its inception in March last year. Employers, who are currently required to contribute to the scheme by paying employer NICs and pension contributions, will see their contributions rise from July to include an additional 10% towards the costs of an employee’s unworked hours, rising to 20% from August. The amount employees will be entitled to receive under the scheme remains unchanged.
The furlough scheme will be extended until the end of September by the chancellor in the Budget later. Rishi Sunak said the scheme - which pays 80% of employees' wages for the hours they cannot work in the pandemic - would help millions through "the challenging months ahead".