Another Furlough Extension Until March 2021

For the second time in a week, the Job Retention Scheme aka furlough has been extended. Workers across the United Kingdom will benefit from increased support with a five-month extension of the furlough scheme into Spring 2021. The funding is now also open to Scotland, Wales and Northern Ireland. The reasoning behind this sudden change? The Chancellor stated that although lockdown is only proposed until December 2nd 2020, the economics effects  are much longer lasting for businesses and areas that the duration of any restrictions.


We know that there are many accountants out there who are charging for the additional service of organising your staffs furlough pay. At Nordens, we won’t be. We know that everyone is trying to stay above water right now, so we don’t want you to worry about another cost. We are more than happy to get the paperwork started to ensure your staffs pay through the Job Support Scheme at our cost.


Employers small or large, charitable or non-profit, are eligible for the extended Job Retention Scheme. There are currently no employer contribution to wages for hours not worked. Employers will only be asked to cover National Insurance and employer pension contributions for hours not worked. For an average claim, this accounts for just 5% of total employment costs or £70 per employee per month. The JRS extension will be reviewed in January to examine whether the economic circumstances are improving enough for employers to be asked to increase contributions. Grants will cover a furloughed employee’s usual wages, capped at £2,500 a month. They will not be required to contribute to employees’ wages, as had been required in September and October. Luckily, neither the employer nor the employee needs to have used the CJRS previously to use the extended scheme.


Employers will need to agree full furlough or flexible furlough arrangements with employees in accordance with employment law and their contracts of employment. Full guidance on the extended scheme is expected to be published imminently. The Job Support Scheme, which was scheduled to come in on Sunday 1st November, has been postponed until the furlough scheme ends. Additional guidance will be set out shortly.


On top of this, the government has announced:

  • Cash grants of up to £3,000 per month for businesses which are closed worth more than £1 billion every month
  • £1.1 billion is being given to Local Authorities, distributed on the basis of £20 per head, for one-off payments to enable them to support businesses more broadly
  • Plans to extend existing government-backed loan schemes and the Future Fund to the end of January, and an ability to top-up Bounce Back Loans
  • An extension to the mortgage payment holiday for homeowners
  • Up to £500 million of funding for councils to support the local public health response.
  • Self Employment Income Support Scheme (SEISS) third increased grant calculated at 80% of average trading profits, up to a maximum of £7,500.


With all of these new announcements and schemes, it is important to consider how this affects your business and seek advice at the earliest opportunity. Both the government and banks will need all of your paperwork to be up to date and in order to consider you for any loans or grants. Make sure that you have sent everything in to us, in order and on time so that we can assist you with the best deals. Contact us today for further information on this grant on 02085300720 or email