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Speaking to the House of Commons, the Chancellor said: “On Monday, the Prime Minister set out the action we need to take between now and the start of December to control the spread of coronavirus. In response, we’re providing significant extra support to protect jobs and livelihoods in every region and nation of the United Kingdom: An extension to the Coronavirus Job Retention Scheme.”
The scheme extension will see the furlough system in place until March 2021.
Councils will be given £1.6billion to support their local economy and local healthcare response.
The Chancellor added: “Our highest priority remains the same: to protect jobs and livelihoods.
“So we can announce today that the furlough scheme will not be extended for one month – it will be extended until the end of March.
“The Government will continue to help pay people’s wages, up to 80 percent of the normal amount.”
Just as the furlough scheme before, the extension covers salaries up to £2500 a month.
The policy will be reviewed in January to decide whether economic circumstances are improving enough to ask businesses for a bigger contribution.
For self-employed people, the next Income Support Grant, which covers the period November to January, will be increased to 80 percent of average profits up to £7,500.
Can you go back on furlough after being taken off? The short answer is yes.
Workers who have been previously furloughed and returned to work, can be furloughed again.
As it stands, your employer will only be able to use the scheme to pay you if you were employed and paid on or before October 30, 2020.
You can be furloughed full time or part time. For example, you could work three days and go on furlough for the remaining two.
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This is known as the flexible furlough scheme.
If your employer put you on furlough, they shouldn’t have asked you to work during any hours you’re supposed to be off – including on a voluntary basis.
Employers can ask workers to do certain types of training, such as online courses to improve knowledge and skills.
They can’t ask you to undertake any training programmes if it makes money or provides them with a service.
If they ask you to work during furloughed hours, your employer could be committing a criminal offence.
In addition, people can work somewhere else if your contract with your current employer lets you. Getting a new job will not affect your furlough pay from the other employer.
If you do get a new job, make sure:
- You can go back to work for the employer who furloughed you when they decide to bring you back
- Your new employer gives you the HM Revenue and Customs (HMRC) starter checklist form – you will need to complete Statement C.
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