Martin Lewis, Money Saving Expert, has been a valuable source of help for those hoping to cut back or manage their money better. The financial journalist has used his platform to provide tips to Britons who have been able to apply his knowledge to their own circumstances. This evening, Martin used his self-titled Money Show on ITV to provide further insight into the matter of furlough amid news of the second lockdown.
However, another point worth bearing in mind is that employees who have been made redundant could be brought back under the scheme.
This could provide financial hope to people who would have otherwise lost their job and a regular source of income.
Martin added: “Rehire and furlough is allowed for those who have been made redundant or who have left, provided they were on the payroll between March 20, 2020 and September 23, 2020.
“There may be a cost to furlough, as the employer has to pay National Insurance and pension contributions if they’re eligible.
“You can rehire and furlough, it is allowed. If you’ve been made redundant and they may want you back because it was a short term cash-flow issue – just ask!”
Rishi Sunak announced the decision to extend the furlough scheme in the House of Commons today.
Speaking to MPs, he said: “Our highest priority remains the same: the protect jobs and livelihoods.
“Given significant uncertainty, a worsening economic backdrop, and the need to give people and businesses security through the winter, I believe it is right to go further.
“So we can announce today that the furlough scheme will not be extended for one month – it will be extended until the end of March. The government will continue to help pay people’s wages, up to 80 percent of the normal amount.
“We’ll review the policy in January to decide whether economic circumstances are improving enough to ask employers to contribute more.”
The Job Retention Bonus, Mr Sunak acknowledged, which originally covered employers until January, has become somewhat moot.
As a result, the government has said it will redeploy a retention incentive at the appropriate time to help those who need support most.
The government has insisted despite the extension of support that the lockdown will last for four weeks only.
Martin Lewis is the Founder and Chair of MoneySavingExpert.com. To join the 13 million people who get his free Money Tips weekly email, go to www.moneysavingexpert.com/latesttip.