The furlough scheme will continue until April 2021 after it was extended a further month by the Chancellor yesterday.
Workers will continue to have 80% of their wages paid by the government however companies should still be paying pension and national insurance contributions.
Previously the scheme had been due to close at the end of January, the Chancellor then extended that until the end of March but now the scheme will continue an extra month.
At its peak over 9 million people were getting their salary paid by the government and spend on the scheme had surpassed £46 billion so far.
Other government backed loan schemes, such as the Coronavirus Business Interruption Loan Scheme (CBILS) were also extended until the end of April.
The chancellor said: “Our package of support for businesses and workers continues to be one of the most generous and effective in the world – helping our economy to recover and protecting livelihoods across the country.
“We know the premium businesses place on certainty, so it is right that we enable them to plan ahead regardless of the path the virus takes, which is why we’re providing certainty and clarity by extending this support.”
Commenting on the extension of the furlough scheme until the end of April, BCC Director of Policy James Martin said:
“The extension to the furlough scheme is a welcome move and will provide much needed certainly and support that many need to protect jobs and livelihoods.
“Over the coming months, the government should continue to listen to business and evolve it support measures with the on the ground impact of the pandemic. Further cashflow support will be needed for companies who are unable to operate for an extended period, or those who face reduced capacity or demand due to ongoing restrictions.
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