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Furlough scheme to continue amid new lockdown

The government has announced that its novel coronavirus (Covid-19) furlough scheme will now run until December 2nd, after it was confirmed England will enter into a nationwide lockdown later this week.

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Lockdown will begin on November 5th and run until at least December 2nd

From November 5th, non-essential shops, leisure facilities, entertainment venues and personal care facilities will have to shut for at least four weeks, as the government attempts to slow further spread of Covid-19.

In line with this, the government will extend its furlough support scheme until the end of lockdown, which is currently set to run until December 2nd but could be extended if the situation does not improve by that date.

The furlough scheme had been due to end on October 31st and replaced by the Job Support Scheme (JSS), whereby employees would be paid 67% of their wage – up to £2,803.33 per month – by the government.

The government says it still intends to introduce the JSS when lockdown ends.

However, for now, the furlough scheme will remain, with the government to pay 80% of furloughed workers’ wages.

Employers will have the option of topping up workers’ salaries using their own funds, while they will also be required to cover pension and national insurance contributions.

Other support also available to businesses includes up to £3,000 per month under the Local Restrictions Support Grant if their premises is forced to close due to lockdown.

Companies will receive  £1,000 for every furloughed employee they keep on until at least the end of January, as well as £1,500 for every out-of-work 16-24 year-old given a high quality six-month work placement.

The government will also pay £2,000 for every apprentice under the age of 25 taken on until the end of January - or £1,500 for those over 25.

In terms of self-employed people, those impacted by Covid-19 will have access to an increased grant covering 40% of their profit over a period of three months, up to a maximum of £3,750. br />
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