Rishi Sunak, Chancellor of the Exchequer, has extended the furlough scheme until the end of March.

The Chancellor announced on November 5, 2020, that the Coronavirus Job Retention Scheme (CJRS) grants will continue to be made available across the United Kingdom under the highest levels of Covid-19 restrictions until March 2021. The UK government will be paying 80% of wages up to a cap of £2,500.

The Chancellor informed that this policy will be reviewed in January 2021 to determine whether economic conditions of the country have improved to the point to ask employers to contribute more than NICs and pension contributions.

Mr Sunak announced the furlough extension for the whole of the UK.

He also informed, the next self-employed grant, covering the time from November to January, will now rise to 80% of average profits up to £7,500 in a stretch of 3-months.

The announcement came after the Bank of England injected an additional £150bn into the economy in its fight against the Covid-19 crisis, following a rapid rise in rates of Covid infection recently.

Starting November 5, England will also join the rest of the United Kingdom to follow firmer lockdown rules. According to the new lockdown rules, pubs, bars and restaurants will remain closed along with all non-essential retail shops.