Coronavirus Job Retention Scheme (CJRS) scheme extension – Update

Just in case you missed the Saturday 31 October 2020 update, the CJRS (furlough scheme), which was due to end on Saturday, is to be extended throughout the new national lockdown beginning on Thursday 5 November. The scheme is therefore still available from 1 November until December.

The support available follows the scheme in August, the Government paying 80% of wages up to a cap of £2,500 but not contributing NICs and pension contributions. Flexible furloughing is allowed as well as full-time furloughing. The Job Support Scheme, which we previously updated you on, will be postponed until the CJRS ends.

The HM Treasury press release (link below) sets out the amended rules. 

  • The scheme is available to employers and employees who have not used furlough in the previous scheme.
  • The employee must have been on the employer’s PAYE payroll by 23:59 on 30 October 2020.
  • Employers can claim the grant for the hours that their employees are not working, calculated by reference to their usual hours worked in a claim period.
  • The claim is for minimum period of seven consecutive calendar days.
  • The claim is payable at 80% of wages up to a cap of £2,500 for hours not worked and the amount claimed must be paid to the employee in full.
  • Employers will pay employer NICs and pension contributions.
  • The employer must continue to pay the employee for any hours worked in the normal way.
  • Employers can choose to top up employee wages above the scheme grant at their own expense.

The Government have as yet not confirmed when claims can be made but have said that there will be no gap between the previous end-date of CJRS and this extension. We are awaiting  more detailed guidance.

Further details can be found at

https://www.gov.uk/government/news/furlough-scheme-extended-and-further-economic-support-announced

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