Managing Your Money 

What does being furloughed mean for your pension?

What does being furloughed mean for your pension?

More than 9m workers are expected to be furloughed in the UK this year as the country grapples with the economic shock posed by the coronavirus crisis. Under the government’s Job Retention Scheme, which launched on 20 April, companies that have been forced to close or are experiencing reduced activity can claim 80 per cent of their wages, or £2,500 per employee per month – whichever is lower – to keep people employed over the crisis. The scheme is in place until the end of June and chancellor Rishi Sunak has indicated it may be extended into July. A survey by the British Chamber of Commerce has found that two-thirds of UK businesses have already used the government's scheme since it was announced in March and one in three companies have put at least 75 per cent of their workforce on furlough.

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