Furlough scheme update 2021: End date, Budget changes and how to calculate your claim

2 March 2021, 11:59 | Updated: 4 March 2021, 13:42

Furlough scheme UK: Questions rise over when it will end as lockdown restrictions ease
Furlough scheme UK: Questions rise over when it will end as lockdown restrictions ease. Picture: PA

By Zoe Adams

Can I claim furlough? When does the scheme end? And how do you calculate furlough pay? Your questions answered following Rishi Sunak's budget.

A roadmap out of Covid-19 lockdown restrictions has been confirmed and the Budget 2021 has outlined it's official plans to overcome the financial crisis that coronavirus has brought - so what does that mean for the furlough scheme? And when does it end?

Rishi Sunak confirmed in his Spring Budget speech that furlough will still be available for businesses and employees until autumn as he gives companies extra time to recover from the financial impact of the pandemic.

Related article: How long will England work from home for following lockdown restrictions?

Here’s everything you need to know about the current furlough scheme in the UK, including the end date and how to calculate furlough pay:

People in the UK were furloughed when they were unable to work due to coronavirus restrictions
People in the UK were furloughed when they were unable to work due to coronavirus restrictions. Picture: PA

What is the furlough scheme?

The government introduced the furlough scheme during the first lockdown in 2020 which allowed companies to continue paying employees, even though they were unable to work.

The government will pay up to 80% of an employee's salary.

The furlough scheme also applied to parents who needed to look after children while schools were closed, those with caring responsibilities and those who were not able to work due to being clinically extremely vulnerable.

The government would pay up to 80% of wages in the furlough scheme
The government would pay up to 80% of wages in the furlough scheme. Picture: PA

What is the furlough end date and has it been extended?

Following on from the budget, the furlough scheme’s end date is now September 2021.

Lockdown restrictions are due to fully end by 21st June, if the the vaccination scheme continues to be a success and the infection rates fall, allowing companies and employees time to recover.

How to calculate furlough pay?

You are able to claim the furlough scheme whether you are full-time, part-time agency or on a flexible or zero-hour contract, but you have to have been on your company’s payroll system before the extension was announced. This was November 2020.

It doesn’t matter if you have been furloughed before.

To claim furlough for your employees, or to find out how much you are entitled to, you can use the government’s furlough calculator on their official website.