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Daily Mirror
Daily Mirror
Business
Emma Munbodh

UK furlough scheme end date: Will the financial support be extended?

The furlough scheme is due to come to an end this month with the government already winding down its level of support.

The financial lifeline has provided help for millions of businesses and workers during the coronavirus crisis.

Up to 1.7 million workers were on furlough at the beginning of August and there are fears that many of these people could be made redundant when the scheme ends.

The government has been slowly reducing the amount it contributes toward hours not working by furloughed staff.

It used to contribute 80% of pay, up to a cap of £2,500 a month. This then fell to 70%, up to £2,187.50, from July 1.

There are fears of mass redundancies when furlough ends (Getty Images/iStockphoto)

In its most recent reduction, the amount the government pays dropped again on August 1 to its current level of 60% contribution for hours not working, capped at £1,875.

The remaining 20% of the furloughed employee’s income, plus pension and National Insurance contributions, now come from their employer, again capped at £2,500.

Crucially, it means that employees are still getting 80% of their pay for hours not worked.

It is just the amount contributed by the government that is being reduced, with employers being expected to make up the remaining amount to the 80%.

When does the furlough scheme end?

The job retention scheme was first announced by Chancellor Rishi Sunak in March 2020 for an initial three month period - due to end in May 2020.

The deadline has been pushed back several times since, including until October 2020, then until December 2020.

It was due to close in March 2021, but was extended by one extra month to April 30, 2021 after a third mandatory lockdown was introduced.

Furlough will now close for good on September 30.

Is enough being done to help workers coming off furlough? Let us know in the comments.

Anyone can join the scheme, including parents who can no longer work due to school closures.

However, its primarily in place for those who cannot work due to non-essential shop and business closures.

Those on full-time contracts, zero-hours contracts and fixed-term contracts, as well as agency workers, are eligible for furlough.

For any claims from May 1 until the end of September, you need to have been on your employer's PAYE payroll on March 2, 2021 to be eligible.

It is down to your employer to arrange your furlough.

You can be part-time or full time furloughed, with the reduced pay only applying to the hours you don't work.

Any hours you are able to work will be paid at your normal rate.

Will the furlough scheme be extended?

Speaking during a LinedIn broadcast last month, Chancellor Rishi Sunak said there are no plans to extend the furlough scheme beyond September.

When asked about the end of furlough, Mr Sunak said: "Furlough, we put in place a year ago, our plan for jobs. Everything I see, shows me that the plan is working.

"Furlough we know has helped save millions of jobs, people have described it as a lifeline, a Godsend.

"The jobs numbers are heading in the right direction. Unemployment is forecast to be so much lower than we thought, when we were fearing the absolute worst.

"There are no plans to extend furlough, it will have run for a year and a half."

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