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Furlough scheme extension 2021: When does furlough end? Will furlough be extended? Expert


The furlough scheme, also known as the Coronavirus Job Retention Scheme, allows employees to claim 80 percent of an employee’s usual salary for hours not worked, up to a maximum of £2,500 a month. The scheme mirrors the self employed income support scheme (SEISS grant), which enables self employed workers to claim money from the Treasury in an amount equal to that of furlough. Employees should not be carrying out any work on behalf of their company while on furlough, even if they’re asked to.

When does the furlough scheme end?

The furlough scheme, after having been extended three times already, is expected to come to an end on April 30, 2021.

Chancellor Rishi Sunak 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 businesses to plan ahead regardless of the path the virus takes, which is why we’re providing certainty and clarity by extending this support, as well as implementing our Plan for Jobs.”

READ MORE: Rishi Sunak ‘unlikely to withdraw furlough support’ in April 

Will the furlough scheme be extended?

There is mounting speculation the furlough scheme could be extended.

One source close to the Chancellor reportedly told Bloomberg “support for jobs isn’t going to end”, while most businesses are still unable to close.

Speaking to Express.co.uk, Gary Hemming from abcfinance.co.uk, said the scheme could be extended, albeit in a different way.

Mr Hemming said: “With claims of £3.4billion on the Job Retention Scheme made in December, the Chancellor will be keen to ensure that the scheme isn’t in place for any longer than necessary.

Addressing the people of the UK, Mr Sunak said: “I also want to reassure the people of Scotland, Wales and Northern Ireland.

“The furlough scheme was designed and delivered by the Government of the United Kingdom on behalf of all the people of the United Kingdom, wherever they live.”

He added: “It is a demonstration of the strength of the Union and an undeniable truth of this crisis we have only been able to provide this level of economic support because we are a United Kingdom.

“The Treasury is, has been and always will be the Treasury for the whole of the United Kingdom.”


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