Changes to furlough scheme
Monday 1st June 2020
The Government has announced changes to the Coronavirus Job Retention Scheme (CJRS).
The CJRS will close for those who have not been furloughed for at least 3 weeks by 30 June 2020, meaning a cut-off date of 10 June for first-time furloughs.
Flexible furlough will start on 1 July, meaning employers can bring furloughed staff back to work, but still claim under the CJRS for hours not worked. These arrangements must be agreed in writing.
In addition, from 1 August, employers will need to start contributing to CJRS payments as follows:
- August - Employers start to pay the employer national insurance and pension contributions due.
- September - Government contribution will reduce to 70% of wages (subject to a cap of £2,187.50) and employers must pay 10% to make up the 80% total (capped at £2,500).
- October - Government pays 60% of wages to a cap of £1,875, with employer contribution rising to 20% (to a cap of £2,500).
The CJRS will then end on 31 October 2020.
Further guidance on flexible furloughing and how employers should calculate claims is to be published later this month.
The press release is available here: https://www.gov.uk/government/news/chancellor-extends-self-employment-support-scheme-and-confirms-furlough-next-steps
All information in this update is intended for general guidance only and is not intended to be comprehensive, or to provide legal advice.