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Furlough ends on 30 September 2021 – what happens next?

We are in the last throws of the Coronavirus Job Retention Scheme (Furlough) with the Government contribution being phased out before complete removal on 30 September 2021.  The worrying question for many businesses is – what happens next?

We appear to have moved from the “stopping the spread of the virus” stage to “living with the virus” and the Government are encouraging everyone to return to normal as far as possible while taking sensible precautions to limit the risk of exposure.  Another widespread extension to the furlough scheme therefore looks extremely unlikely, despite multiple last minute reprieves over the past eighteen months.  Whether there will be industry specific We appear to have moved from the “stopping the spread of the virus” stage to “living with the virus” and the Government are encouraging everyone to return to normal as far as possible while taking sensible precautions to limit the risk of exposure.  Another widespread extension to the furlough scheme therefore looks extremely unlikely, despite multiple last minute reprieves over the past eighteen month.  Whether there will be industry specific assistance for the sectors that remain particularly badly affected (e.g. air travel) is still very much uncertain, but on the basis of current Government announcements, even this looks unpromising.  It is reasonable to assume that special government assistance is ending on 30 September 2021 for most sectors, if not all.

The purpose of the furlough scheme was to enable struggling businesses to retain their workforce during the pandemic so they are able to bounce back quickly when markets recover.  For some businesses, the Government schemes have served their purpose well, with personnel now fully utilised again providing the opportunity to bounce back quickly and strongly. 

For other businesses, the position is less positive because employees remain furloughed and the removal of government support will result in additional costs falling on the business with potentially serious financial implications.  The options for these businesses may be unpalatable, but planning effectively is likely to secure the best possible outcomes.  If you are in this position, the right solution will differ from business to business so please contact us to consider the options available to you. 


Contact your usual Menzies partner/manager for further advice or use the Advice@menzies.co.uk for general enquiries

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