Why is furlough being extended until September?

4 March 2021, 16:15 | Updated: 4 March 2021, 17:18

Rishi Sunak has confirmed furlough will last until September 2021
Rishi Sunak has confirmed furlough will last until September 2021. Picture: PA

By Zoe Adams

Rishi Sunak confirmed in his Budget 2021 announcement the coronavirus furlough scheme will be extended until September but why? Especially when lockdown ends in June?

The furlough scheme has been extended until September 2021 as part of Rishi Sunak’s Budget 2021 to help businesses and employees recover from the coronavirus pandemic.

The scheme, which was introduced by the government during the first lockdown in March 2020, is said to help millions through the “challenging months ahead”.

Related article: Furlough scheme updates: When does it end and how to calculate your claim

The furlough extension, which will phase out by September, currently contributes 80% of an employee's wages with employers set to contribute 10% by July and 20% by August and September.

Roadmap out of lockdown: All restrictions are due to end by 21 June
Roadmap out of lockdown: All restrictions are due to end by 21 June. Picture: PA

However, with the roadmap out of lockdown set to officially end on 21 June - why has furlough been extended until September?

With many questioning whether lockdown will actually finish by the end of the roadmap, the Chancellor has explained the extension is to help businesses ease out of any financial struggles.

He pledged he would “continue doing whatever it takes to support the British people and businesses through this moment of crisis”.

The Coronavirus Job Retention Scheme has reportedly protected around 11million jobs since it was created in March 2020.

Chancellor to extend furlough scheme until September

The furlough scheme has been extended until September 2021 to help businesses recover
The furlough scheme has been extended until September 2021 to help businesses recover. Picture: PA

The Government has also confirmed those who are self-employed will also receive extra grants until September.

They launched a fourth grant to cover loss of earning during February-April 2021 and will then release grant number five for May-September 2021.

Sunak has said: “Our Covid support schemes have been a lifeline to millions, protecting jobs and incomes across the UK.

"There's now light at the end of the tunnel with a roadmap for reopening, so it's only right that we continue to help business and individuals through the challenging months ahead - and beyond."

More Latest News

See more More Latest News

"I ran, not to rip the joey away from its mother, but from fear she might attack me," Jones, who also uses the name Samantha Strable, posted on social media.

American influencer apologises after being threatened with deportation for snatching baby wombat from mum

The Forum Chinese Restaurant

Chinese restaurant chef uses CCTV to prove 'nonsense' reviews wrong

Soccer - International Friendly - Venezuela v Nigeria

England star John Fashanu arrested over 'five crimes' as he sues police for £100,000 compensation

NASA astronauts Nick Hague, right, Suni Williams, and Butch Wilmore. (NASA via AP)

'Stranded' NASA astronauts set to return from nine month space mission - but what health issues could they face?

Exclusive
Jordan Stephens, Rizzle Kicks star.

Rizzle Kicks star says children 'rely' on online communities for connection as he says 'boredom' to blame for rising crime

Britain's Prime Minister Keir Starmer holds a press conference in the Downing Street Briefing Room after hosting virtual meeting with international leaders to discuss support for Ukraine.

Military chiefs to meet in UK next week - as Starmer confirms Ukraine peace effort ‘moving into operational phase’

Smoke billows from the MV Solong cargo ship in the North Sea, off the Yorkshire coast in England, Tuesday, March 11, 2025. (Dan Kitwood/Pool Photo via AP)

Russian captain of Solong container ship remanded in custody following crash with US oil tanker

BRITAIN-UKRAINE-DIPLOMACY-POLITICS-DEFENCE

'Coalition of the willing': Starmer hosts Ukraine peace summit as PM urges Putin to 'come to the negotiating table'

Joanne Penney, 40.

Five charged and one arrested after fatal shooting of 'deeply loved' mother

Ozdemir Zia hit Edna McLean as he turned his double-decker near Woolwich Arsenal station, London.

Bus driver avoids jail after killing 83-year-old pensioner in 'momentary error'

Front facade of a pretty country cottage, Netherbury, Dorset, UK - John Gollop

Met Police suggest planting roses in your garden could deter would-be burglars

March 11, 2025, London, England, UK: Actor, director and writer NOEL CLARKE arrives at the Royal Courts of Justice for his libel case against The Guardian over articles on sexual misconduct allegations against him.

Actress said to have been groped by actor Noel Clarke tells court 'it is a lie'

Melbourne, Australia. 15th Mar, 2025. Lando Norris of McLaren celebrates taking pole position during Qualifying at Albert Park Circuit in Melbourne, Victoria, Saturday, March 15, 2025.

Lando Norris takes pole in Australia GP qualifying - as Lewis Hamilton trails in eighth on Ferrari debut

Merritt Island, Florida, USA. 14th Mar, 2025. A SpaceX Falcon 9 rocket carrying Crew-10 astronauts lifts off from Launch Complex 39A (LC-39) at NASA's Kennedy Space Center, Florida, on Mar. 14.

SpaceX rocket finally launches to bring two stranded NASA astronauts back to earth after nine months

The body of 23-year-old Martine Vik Magnussen was discovered in a basement in Great Portland Street, London, in 2008

On-the-run suspect urged to hand himself in 17 years on from murder and rape of student found dead in basement

Pint of Guinness in front of different ale and beer pumps, The Merchant's Arch Bar & Restaurant, Temple Bar, Dublin, Ireland

Guinness pint prices could soar to more than £6 due to Trump’s tariff war