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Chancellor Rishi Sunak has just revealed the 2021 Budget, and with it comes a vast amount of change and support for businesses.

As more than 700,000 people have lost their jobs and with the UK economy shrinking by 10%, Sunak stated that he will do ‘whatever it takes’ during the pandemic to aid the UK economy.

Describing yesterday’s statement as the first step in the long road to recovery, the Chancellor added: “It’s going to take this country, and the whole world, a long time to recover from this extraordinary situation.”

One of the key areas of focus from the Budget announcement, is the extension of the Coronavirus Job Retention Scheme (CJRS) – this has now been expanded to 30th September 2021. 

Of note for employers, is the phased approach from hereon in, to the support for businesses and individuals – read below for more details:

Furloughed employees will continue to receive 80% of their usual salary for hours that are not worked, capped at £2,500 gross per month until 30th September 2021.

Employers are eligible to claim for the furloughed salary as follows:

Eligibility criteria to the scheme continues to apply, and the key highlights are set out below:

As previously set out, employers must inform the employees that they are placed on furlough in writing. To minimise risks, employers should seek explicit consent from the employee via an agreement as this constitutes as a change of terms and conditions and reduction in pay.

Given the rapid changes seen recently, this article and information is accurate at the time of writing and may change as the situation develops.

The team at IRIS HR Consulting are fully conversant with changes as they are announced and are able to support employers with guidance as needed. If you have any queries or would like to know more, please contact us at IRIS HR Consulting.