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The Chancellor of the Exchequer is expected to announce an extension to the Coronavirus Job Retention Scheme, (“the scheme”) into the summer during his Budget announcement on 3 March 2021.

The Scheme, which is more commonly referred to as “the furlough scheme” is presently due to come to an end on 31 April 2021, having already been extended last winter following the government’s decision to implement new national “lockdown” measures in November 2020.

Under the Scheme, the Government presently pays 80% of workers’ wages while furloughed, up to a maximum of £2,500 per month.

While this extension is expected, it is not yet certain whether this will go ahead, however, it should give employers enough time to consider their own arrangements and whether they intend to continue to make use of the Scheme if it is extended, and if so, checking or ensuring that adequate agreements are in place. If the Scheme is extended, it is likely that this will have an impact on any employers decision regarding redundancies. Alternatively if restrictions are eased, employers might be considering asking employees to return to work.

If you are considering your options as an employer, or are an affected employee and would like some advice, get in touch with a member of our Employment team at or call us on 01484 821 500.