Furlough scheme extended until December

Following the announcement of a second lockdown period in England to tackle the rise in cases of COVID-19, Prime Minister Boris Johnson has revealed that the Coronavirus Job Retention Scheme (CJRS) – or Furlough Scheme – will be extended until December. The scheme was originally due to close on 31st October.

The scheme will revert back to employees receiving 80% of their current salary for hours not worked, up to a maximum of £2,500. Businesses will be paid upfront to cover wages costs.

Employers will have flexibility to bring furloughed employees back to work on a part time basis or furlough them full-time. National Insurance and employer pension contributions must be paid by the employer, which, for the average claim, accounts for just 5% of total employment costs.

To qualify, employees must have been on the PAYE payroll by 30th October. They do not need to have been on the furlough scheme before. 

The Job Support Scheme, which was scheduled to come into force today (1st November) has been postponed until the Furlough Scheme ends.

Additional guidance is due to be released by the government shortly.

Updated: 2.11.20