It has been a weekend of change yet again and with that we are faced with further updates to the government schemes. With a further ‘lockdown’ announced in England, and increased localised restrictions continually evolving across the UK, the Government has now decided to extend the current Coronavirus Job Retention Scheme (‘CJRS’) by one month, until 1st December 2020.
In summary:
- The level of support provided to eligible businesses will mirror that available under the scheme in August 2020, whereby:
- the government will pay 80% of an employee’s wages up to a cap of £2,500; and
- employers will pay the relevant employer National Insurance contributions and employer pension contributions only for the hours the employee does not work.
- ‘Flexible furloughing’ will be allowed in addition to full-time furloughing, as per the current CJRS.
- Businesses will receive payment upfront to cover wages costs, however, there may be a short period initially when businesses are paid in arrears while the online claim system is being updated.
- The new ‘Job Support Scheme’ will then be introduced following the end of this extension period.
Further guidance is expected to be published in the coming days, but a summary of the full announcement made by the Prime Minister on 31st October 2020 can be found here.
More information on CIRS and other Government support schemes can be found on the following links:
www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme
www.gov.uk/government/news/furlough-scheme-extended-and-further-economic-support-announced
As always, should you have any further queries or require our assistance in relation to any of the above schemes, please do not hesitate to contact us.
