Has furlough been extended? Latest news on UK government scheme extension plans to support workers in England

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Rishi Sunak will reveal his full plans for the furlough scheme when delivering the 2021 Budget, which will be shaped by the Covid pandemic

The furlough scheme has been championed as protecting millions of jobs across the UK since it was introduced at the start of the Covid pandemic.

The initiative, officially known as the Coronavirus Job Retention Scheme (CJRS), has paid 80% of some employees' salary up to £2,500 a month for hours not worked throughout the coronavirus crisis.

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And, as prime minister Boris Johnson outlined how and when England will come out of a third lockdown, attention soon turned to whether the government will continue providing financial support as businesses reopen.

Rishi Sunak unveils his Budget next weekRishi Sunak unveils his Budget next week
Rishi Sunak unveils his Budget next week
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Has furlough been extended?

The furlough scheme has been extended until the end of September by Mr Sunak on the eve of his 2021 Budget address.

The furlough scheme will continue to pay 80% of employees' wages for hours they cannot work during the pandemic.

Yet from July employers will be required to contribute to the scheme if they want to keep workers on furlough.

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Employers will be expected to contribute 10% of wages in July, rising to 20% in August and September.

"Our Covid support schemes have been a lifeline to millions, protecting jobs and incomes across the UK," said Mr Sunak.

"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."

Labour said the changes to support schemes could have been made months ago to protect jobs and livelihoods.

When was furlough due to end?

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The government's furlough scheme was scheduled to end on 30 April 2021 - more than a year since it was first introduced to avoid mass redundancies due to the virus.

The scheme has been used by employers in all four nations, with more than nine million people on furlough during the first peak of the virus in the spring and summer of 2020.

It has come at a heavy price to the public purse, however, with the complete support package costing in the region of £200 billion, including additional tax deferrals and grants for businesses.

Who can be placed on furlough?

All employees - be it full time, part time, agency, flexible or zero hour contracts - can be placed on furlough, as long as the individual was on the company's books before the scheme was last extended.