Coronavirus Job Retention Scheme: furlough extended again

Last updated 3rd March 2021.

In today’s Budget, the government has announced extensions to both the Self-Employment Income Support Scheme (SEISS), and the Coronavirus Job Retention Scheme – better known as furlough – to provide support for people who aren’t able to work as normal because of the restrictions due to coronavirus.

You can find out more about the extension to SEISS and the remaining claim periods in our updated blog, Self-Employed Income Support Scheme update. In this blog we’ve consolidated the latest furlough news, in a way in which we hope you’ll find easy to understand.

• The furlough scheme was due to run out on 30 April 2021, but has now been extended until the end of September.
• As with the existing scheme, the government will pay furloughed workers 80% of their salary while they are furloughed, up to £2,500 per month.
• Employers can also ‘flexibly furlough’ some or all of their workers if they only need them to work part-time, or cannot afford to employ them full-time at the moment. These employers must pay employees in full for the hours they actually work, and 80% of their salary from the government for hours they are unable to work.
• As is currently the case, employers will be expected to pay your national insurance and pension contributions for the hours you don’t work. 
• Employers can also choose to top up your furlough pay so that you receive more than 80%.
• From July onwards, employers will be expected to contribute more towards the hours their staff do not work: 10% in July, increasing to 20% in August and September.
• If employers haven’t used the scheme before, they can use it now.
• Employees can be furloughed at any point between now and September even if they haven’t been before.
• Employees on all types of contract can benefit.
• As before, you don’t need to ‘claim’ furlough – your employer will let you know if they intend to use the scheme.

If you have lost income but you’re not entitled to the furlough scheme

• If you’re self-employed, read our Self-Employed Income Support Scheme update.
• Use our free, independent benefit checker to see if you can claim any additional support.
• If you’ve been made redundant, take a look at our redundancy guide.
• If you’re one of our customers on a Debt Management Plan, IVA, Trust Deed or DAS, let us know as soon as your financial situation changes, so we can make sure you’re not paying more than you can afford into your debt solution. You can find details on how to contact us on our website.