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Chancellor Extends Furlough Until September 2021

Great news for many workers ...


Posted by Roger Eddowes on 11/03/2021 @ 8:00AM

The Chancellor has extended the furlough scheme until September 2021, offering relief to many hard-working people as the UK economy slowly opens up in the next few months ...

It will be a relief to many workers that the Chancellor has extended furlough until September 2021!

It will be a relief to many workers that the Chancellor has extended furlough until September 2021!

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However, there are changes to the scheme which you should be aware of:

  • From the 1st of May 2021, furlough can be claimed for eligible employees that were employed by you from the 2nd of March 2021. They must also be on your PAYE payroll.

  • Your PAYE Real Time Information (RTI) submission must be made between the 20th of March 2020 and the 2nd of March 2021 for them to be included.

  • Furlough funding per employee does not change between now and the end of June.

  • As of July, it will cost more for any employer who still needs to make use of it.

  • Furloughed workers are still entitled to 80% of their wages, up to a maximum of £2,500 per month for those hours unworked.

  • From July, employers will have to add 10% themselves, and in August and September, you will need to add 20%.

  • If the economy unlocks as the Chancellor predicts, furlough will close at the end of September 2021.

As many employers will welcome the easing of restrictions after a year of lockdown and stop-start opening up of premises, those employees put on furlough due to childcare and schooling issues can return to work.

Let's hope that COVID-19 infection levels stay low so that the economy can open up again as scheduled and that we are able to return to some degree of normality in the next few months.

Until next time ...

Business Godparent


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About Roger Eddowes ...


Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.

Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.