Furlough period extended

ALL AREAS: The furlough scheme has been extended until the end of March, the Chancellor confirmed yesterday (Thursday).

Speaking in the House of Commons, Rishi Sunak revealed that the job retention scheme will carry on into the spring, paying up to 80 per cent of wages for people who are no longer working.

The scheme had already been extended until December, in line with the second lockdown, but the extension will be a relief for many struggling businesses and employers.

For hours not worked, employers will only have to pay employer national insurance and pension contributions.

Mr Sunak added that self-employed people would be receiving an income support grant for November to January that will be increased to 80 per cent of profits up to £7,500.

There will be a review in January to see if the economy has improved enough to ask employers to contribute more.

Mr Sunak said: “Given the significant uncertainty, a worsening economic backdrop and a need to give people and businesses security through the winter, I believe it is right to go further.”