Introduction
Chancellor of the Exchequer Rishi Sunak has announced in the Spring Budget 2021 an extension of the Coronavirus Job Retention Scheme (CJRS), better known as the 'furlough scheme', for all sectors until 30 September 2021, with employer contributions gradually increasing from 1 July 2021.(1) While an extension of the furlough scheme beyond its planned closure date of 30 April 2021 had been widely anticipated, many expected that it would close at the end of June 2021 – so the latest announcement is highly welcome news for many employers.
The extension means that the CJRS will remain in place for several months after the planned full reopening of the economy in England on 21 June 2021 and will have been in place for a total of 18 months by the time that it closes.