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COVID-19 | Job Retention Scheme Updates

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In a government briefing on 29 May, Chancellor Rishi Sunak confirmed that the Job Retention Scheme is to slowly wind down to a final closure at the end of October.

We have summarised below the key points and dates:

  • The current Job Retention Scheme will close to new entrants from 30 June 2020. Employers have until 10 June 2020 to furlough staff for the first time under the current scheme to achieve the minimum of 3 weeks furlough before 30 June 2020.
  • It is understood that a staff member who has already been furloughed under the old scheme for 3 weeks they will qualify under the new scheme.
  • From 1 July 2020, furloughed staff can be brought back on a part-time basis, with the hours worked funded by the employer.
  • In June and July, the government will pay 80% of wages up to £2,500, as well as employer National Insurance Contributions (NICs) and pension contributions for the hours the employee doesn’t work.
  • In August, the government will pay 80% of wages up to £2,500 and employers will pay employer NICs and pension contributions for the hours the employee does not work.
  • In September, the government will pay 70% of wages, up to a cap of £2,187.50; employers will pay employers NICs and pension contributions, as well as 10% of wages to make up the 80% total, up to a cap of £2,500 for the hours the employee does not work.
  • In October, the government will pay 60% of wages up to a cap of £1,875; employers will pay employers NICs and pension contributions, as well as 20% of wages to make up the 80% total, up to a cap of £2,50 for the hours the employee does not work.

Further details on the new flexible furlough scheme are due on 12 June.

A complete, regularly updated page listing the full range of support available and other helpful information can be found  at https://www.cottonsaccountants.co.uk/support-for-those-affected-by-covid-19

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