Furlough scheme extended until December 2020

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CJRS Extended

Furlough scheme extended 1st November – Yesterday the government announced that, in tandem with a new period of lockdown from Thursday 4th November, the old CJRS (furlough scheme) would not be switched off after all and in fact would be extended for a further month, but on the more generous terms that existed in August, when the government-financed a qualifying furloughed worker’s wages to a cap of £2,500 per month, and the employer was responsible only for the employment costs of NI and minimum employer’s pension on the furlough wages. This new period of the CJRS will be known as the ‘Extended Job Retention Scheme.’ In addition, the ‘Extended JRS’ for November does not require the employer to have previously accessed the old CJRS and, employees can still be employed and paid normally for part-time hours in 7-day cycles, as per the rules of the (now delayed) Job Support Scheme, which was due to come into effect today, 1st November, but will now be delayed until the Extended JRS has come to an end in December. What we know about the Extended JRS so far:
  • The extended JRS will remain open until December
  • Employees will receive 80% of their current salary for hours not worked, up to a maximum of £2,500 for November
  • All employers may access the scheme irrespective of size and sector
  • Employees can work part-time or be furloughed full-time
  • Employers will only cover National Insurance and employer pension contributions for the hours not worked
  • The extended JRS will operate as the previous scheme did, with businesses being paid upfront to cover wages costs
  • The CJRS is being extended until December. The level of the grant will mirror levels available under the CJRS in August, so the government will pay 80% of wages up to a cap of £2,500 and employers will pay employer National Insurance Contributions (NICs) and pension contributions only for the hours the employee does not work
  • Employers must have a UK bank account and a UK PAYE scheme to claim the grant
  • Neither the employer nor the employee needs to have previously used the CJRS
  • To be eligible an employee must have been on an employer’s PAYE payroll by 23:59 30th October 2020, and a Real-Time Information (RTI) submission notifying payment for that employee to HMRC must have been made on or before 30th October 2020
  • Employers can claim the grant for the hours their employees are not working and which they normally would have worked – the calculations are expected to be much the same as under the CJRS
  • Employees must be furloughed (partially or fully) for a minimum period of 7 consecutive calendar days and must be paid normally by their employer for any hours worked in that period
  • The grant must be paid to the employee in full.
  • Employers can top up employee wages above the scheme grant if they wish.

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