Furlough scheme extended until October
12 May 2020
Following much speculation, Chancellor, Rishi Sunak, confirmed that the Coronavirus Job Retention Scheme (CJRS) will be extended to 31 October 2020.
Mr. Sunak confirmed that any workers who have been placed on furlough who are eligible for the scheme will continue to receive 80% of their salary, up to a maximum cap of £2,500 per month. There was suggestion that it would be reduced to 60%, with a lower monthly cap but this is not the case.
Further flexibility will be implemented from August in order to prompt workers to return to work, and to attempt to boost and restart the economy. Furloughed workers will be able to work part-time from then, and employers will be expected to pay a percentage towards the salaries of those members of staff. Employer payments will equate to the amount that the government is currently providing, so 80% up to the relevant cap.
The scheme will continue as it stands until the end of July, at which point, changes will be made to allow for further flexibility from the start of August. Further details relating to this will be published by the end of May. The government also intends to look into how furloughed workers wishing to complete additional training and acquire new skills can be supported during this period. It will also work in association with the Devolved Administrations to ensure the scheme supports individuals across the Union.
Statistics that were published today highlight how successful the scheme has been thus far, in protecting 7.5 million workers across nearly a million businesses.
Rishi Sunak said:
“Our Coronavirus Job Retention Scheme has protected millions of jobs and businesses across the UK during the outbreak – and I’ve been clear that I want to avoid a cliff edge and get people back to work in a measured way.
This extension and the changes we are making to the scheme will give flexibility to businesses while protecting the livelihoods of the British people and our future economic prospects.”
The CJRS is just one of a raft of measures introduced by the government in order to support the economy through the outbreak of coronavirus. There is additional support for the self-employed, and various loans and guarantees have been made available.
The information in this article is accurate at the time of publication. For all the latest information, news and resources on how the COVID-19 pandemic is affecting payroll professions, visit our Coronavirus hub.