The Chancellor has extended the furlough scheme to March 2021 to soften the impact for businesses of the second lockdown, building on his previous announcements. The Job Retention Bonus payable in February 2021 has been scrapped.
It comes on top of an earlier furlough extension for November and the Bank of England pumping another £150 billion into the economy.
As the Treasury attempts to come up with a plan that lasts more than four weeks, the Chancellor is giving the UK economy a further lifeline in lockdown.
The furlough policy will be reviewed in January “to decide whether economic circumstances are improving enough to ask employers to contribute more”.
More details are contained in a factsheet, and a separate policy paper for the furlough scheme provides more details on some immediate action required.
Employers concerned about how to implement changes to working agreements retrospectively can be reassured that as long as they are consistent with employment law, furlough agreements made retrospectively that have effect from 1 November 2020 can support a furlough grant claim. However, these retrospective agreements must be in place on or before 13 November 2020 to be relied on for this purpose.
FURLOUGH SCHEME
Winter Economy Plan Part 3 - the lockdown sequel (2 November)
Winter Economy Plan Part 2 (22 October)
Winter Economy Plan Part 1 (24 September)
Check out our Business after COVID-19: Transition Knowledge Hub for more guidance and advice on managing the pandemic.