Travlaw furlough update

Rishi’s done it again!

The Chancellor has done it again – extended furlough in his 2021 Budget. What is bizarre is that last year’s budget didn’t even mention the word “furlough”, it is only as a result of the events of the pandemic that the word is now commonly used by employers.

The furlough scheme has protected more than 11 million jobs since its implementation last March and despite saying last summer that furlough would not be extended, it has now been extended until the end of September 2021. Had employers known at the outset that the furlough scheme would be in place for the best part of 18 months, who knows how many more jobs could have been saved. That said of course the government have had  to be reactive to how the pandemic has unfolded.

Employers have used the furlough scheme as a lifeline to keep employees in employment until the day came when they could return to work fully. This further extension will be welcome news for employers in the travel industry, hoping to keep hold of remaining staff and bring them back fully to work as the travel industry starts to recover and pick up.

The furlough scheme has been extended until the end of September, with levels of contribution from employers increasing to 10% of furloughed hours in July and increasing to 20% in the months of August and September as the economy starts to reopen.

The self-employed will also continue to be supported through to September with two additional grants. As and when any further guidance comes out we will let you know.

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