Pandemic income support schemes extended to autumn

The chancellor has extended the coronavirus job support scheme to September 2021. The government intends to introduce an employer contribution towards the cost of unworked hours of 10% in July 20% in August and 20% in September.

Nigel Morris employment tax director at MHA MacIntyre Hudson said: ‘Extending the furlough scheme until the summer is certainly the right call. In addition to an extension though employers need further incentives to get furloughed employees back to work. The chancellor also needs to think about job support over the long-term and not just for now.’

He said the best way to do this would be ‘to bring back a version of the job retention bonus scheme. This would be especially helpful to those employers who need to phase the return of their employees back to work. The prospect of a one-off payment when furloughed employees return...