[UK] Furlough scheme will be extended to December

[UK] Furlough scheme will be extended to December
02 Nov 2020

Following the announcement of a new nationwide lockdown at the weekend, the government’s furlough scheme will be extended. England will be under new, month-long, restrictions from Thursday 5 November. Chancellor Rishi Sunak has pledged to cover up to 80 per cent of the wages of furloughed employees - up to a maximum of £2,500 a month - until December.

The government’s Coronavirus Job Retention Scheme (CJRS) was originally intended to finish on October 31, to make way for the Job Support Scheme (JSS). The JSS was created to give financial support to employers in regions hit by higher tier restrictions. It was due to run for six months from November 1 until April 30, 2021.

The terms of the new lockdown will force the closure of pubs, restaurants, gyms and non-essential shops, leaving thousands of employees unable to work. The Prime Minister will address the Commons today on the proposed restrictions, then members will vote on the regulations on Wednesday.

The newly extended furlough scheme will see the government revert to paying a full 80 per cent payment of wages. In September and October, it covered only the lower rates of 70 per cent and 60 per cent respectively. However, employers will still be expected to cover pension and national insurance contributions. (Link via original reporting)

Flexible furlough will continue, allowing employers to bring back employees part-time and furlough them for the time they do not work.

Employees will be eligible for the extension if they were on the company payroll by October 30. They do not need to have previously been on the furlough scheme. Employers may again top up the grant to 100 per cent of wages, should they choose to do so.

The government has not yet confirmed when the first claims can be made but has stated that, “there will be no gap in eligibility for support between the previously announced end-date of CJRS and this extension”.

Personnel Today has further details of the extension and advice for employers.

Following the announcement of a new nationwide lockdown at the weekend, the government’s furlough scheme will be extended. England will be under new, month-long, restrictions from Thursday 5 November. Chancellor Rishi Sunak has pledged to cover up to 80 per cent of the wages of furloughed employees - up to a maximum of £2,500 a month - until December.

The government’s Coronavirus Job Retention Scheme (CJRS) was originally intended to finish on October 31, to make way for the Job Support Scheme (JSS). The JSS was created to give financial support to employers in regions hit by higher tier restrictions. It was due to run for six months from November 1 until April 30, 2021.

The terms of the new lockdown will force the closure of pubs, restaurants, gyms and non-essential shops, leaving thousands of employees unable to work. The Prime Minister will address the Commons today on the proposed restrictions, then members will vote on the regulations on Wednesday.

The newly extended furlough scheme will see the government revert to paying a full 80 per cent payment of wages. In September and October, it covered only the lower rates of 70 per cent and 60 per cent respectively. However, employers will still be expected to cover pension and national insurance contributions. (Link via original reporting)

Flexible furlough will continue, allowing employers to bring back employees part-time and furlough them for the time they do not work.

Employees will be eligible for the extension if they were on the company payroll by October 30. They do not need to have previously been on the furlough scheme. Employers may again top up the grant to 100 per cent of wages, should they choose to do so.

The government has not yet confirmed when the first claims can be made but has stated that, “there will be no gap in eligibility for support between the previously announced end-date of CJRS and this extension”.

Personnel Today has further details of the extension and advice for employers.

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