UK Chancellor confirms extension of UK wide Coronavirus Job Retention Scheme which features flexibility, new tapering and employer contributions

The UK Chancellor Rishi Sunak  set out details on Friday 29th May 2020 on how the Coronavirus Job Retention Scheme (CJRS) will continue to support jobs and business until October 2020.

Summary of key points:

  • June and July: The government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance (ER NICS) and pension contributions. Employers are not required to pay anything.
  • From 1 July 2020, businesses can bring previously furloughed employees back part time. A month earlier than previously announced, this means that firms can agree working arrangements e.g. hours, shift patterns  with returning employees and will be responsible for paying employee wages while in work.
  • Claims from July onwards will be restricted to employers currently using the scheme and previously furloughed employees. The scheme will close to new entrants on 30 June, with the last three-week furloughs before that point commencing on 10 June.
  • From August 2020, the level of government grant provided through the job retention scheme will be slowly tapered to reflect that people will be returning to work. Businesses will be asked to contribute a modest share, and individuals will continue to receive that 80% of salary covering the time they are unable to work.
  • August: The government will pay 80% of wages up to a cap of £2,500. Employers will pay ER NICs and pension contributions
  • September: The government will pay 70% of wages up to a cap of £2,187.50. Employers will pay ER NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500.
  • October: The government will pay 60% of wages up to a cap of £1,875. Employers will pay ER NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500.

Further details can be found at GOV.UK including a factsheet.

Check if you can claim for your employees' wages through the Coronavirus Job Retention Scheme here.

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Posted on: Monday 1st June 2020