Breaking News: Important Budget Announcements for Employers

In what will be welcome news for many organisations the Chancellor has this afternoon set out the further measures that will be taken to support employers and help protect jobs over the coming months. One of the most significant announcements for many employers will be the extension of the furlough scheme until the end of September (although there will be a requirement for employers to contribute to the cost of unworked hours from July).

Furlough Scheme Extension

The furlough scheme was set to end on 30th April 2021 but has now been extended to the end of September 2021. Furloughed employees will continue to receive 80% of their salary for hours not worked, up to £2,500 a month, but employers will be asked for a contribution of 10% from July and 20% in August and September towards the hours their staff do not work.

The Chancellor has said that “there’s now light at the end of the tunnel with a roadmap for reopening, so it’s only right that we continue to help business and individuals through the challenging months ahead – and beyond”.

The announcement of the furlough scheme extension will hopefully provide some peace of mind to the many employers who will be trying to assess and manage their forthcoming staffing needs. If you are considering taking steps regarding furlough in your organisation it’s important to seek advice on the facts of your situation before taking action.

Other Announcements

The Chancellor also announced:

  • An extension of the apprenticeship hiring incentive in England to September 2021 and a doubling of the incentive payments for organisations that employ an apprentice to £3,000
  • £7 million for a new “flexi-job” apprenticeship programme in England that will enable apprentices to work with a number of employers in one sector.
  • Small and medium-sized employers in the UK will continue to be able to reclaim up to two weeks of eligible Statutory Sick Pay costs per employee from the government.

If you have an employment law matter you would like assistance with, please do not hesitate to contact Kingfisher Professional Services Ltd as we are happy to help.


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