COVID-19: Coronavirus Job Retention Scheme extension and ‘flexible furloughing’
Last Friday, 29 May, the Chancellor announced details of the extension and terms of the Coronavirus Job Retention Scheme (CJRS) for businesses.
Tapered furlough support from 1 August
From August 2020, the level of government grant provided through the job retention scheme will be slowly tapered to reflect that people will be returning to work.
- June and July: The government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance (ER NICS) and pension contributions. Employers are not required to pay anything.
- August: The government will pay 80% of wages up to a cap of £2,500. Employers will pay ER NICs and pension contribution.
- September: The government will pay 70% of wages up to a cap of £2,187.50. Employers will pay ER NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500.
- October: The government will pay 60% of wages up to a cap of £1,875. Employers will pay ER NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500.
Details of the scheme extension can be found here:
Introduction of Flexible Furloughing
From 1 July, employers can bring back to work employees that have previously been furloughed for any amount of time and any shift pattern, while still being able to claim CJRS grant for their normal hours not worked.
- When claiming the CJRS grant for furloughed hours employers will need to report and claim for a minimum period of a week.
- The scheme will close to new entrants from 30 June. From this point onwards, employers will only be able to furlough employees that they have furloughed for a full 3 week period prior to 30 June.
- This means that the final date by which an employer can furlough an employee for the first time will be 10 June, in order for the current 3 week furlough period to be completed by 30 June.
- Employers will have until 31 July to make any claims in respect of the period to 30 June.
Further details on the introduction of ‘flexible furloughing’ can be found here:
Further support to understand these changes
It is very likely that over the coming days the Govt. and other organisations will provide further support (in the form of webinars and online calculators etc.) to business owners to help understand these changes and apply them to your own circumstances.
We recommend the London Growth Hub website as an useful and up-to-date resource for businesses in the Angel to refer to: https://www.growthhub.london/covid-19-coronavirus-support-for-businesses-and-employers/