Extension to the Coronavirus Job Retention Scheme (“furlough scheme”)

Keeping you up to date with HR news & updates.

Extension to the Coronavirus Job Retention Scheme (“furlough scheme”)

  • Posted

On 12 May, Chancellor Rishi Sunak announced that the Coronavirus Job Retention, or “furlough” Scheme was to be extended, providing additional support for wages until October.

In that announcement, he said that the scheme under current rules would be extended until the end of July, but thereafter there would be a winding down of the scheme, with employers required to contribute and part-time working being a possibility.

On 29 May the Chancellor added a little more meat to the bones of this announcement and also changed it slightly in response to pressure from business groups.

The headline points are as follows:

  • the last day for employers to put staff onto the furlough scheme is 10 June 2020 if they haven’t furloughed that particular staff member for at least three weeks previously – please be mindful of this if you are rotating staff or still unclear of whether you will need staff moving forwards. This is because the scheme is closed to new entrants from 30 June, and the individual will need to have been furloughed for at least three weeks prior to this at some stage
  • the flexibility to the furlough scheme has been brought forward, to commence from 1 July 2020 – from this point staff will be able to work part-time and be furloughed part-time, and businesses will decide how to effect this in practice. This is likely to be of real benefit to businesses who are trying to operate again but either don’t have a need for a full cohort of staff or cannot have everyone in for safety reasons
  • the furlough scheme will close on 31 October 2020.

From 1 August 2020, the furlough scheme’s support begins to be wound down:

  • in August, businesses will take over the responsibility of paying employer’s national insurance contributions and pension contributions, and will no longer be able to reclaim them through the scheme
  • in September, the reimbursement will drop to 70% of salary (to a cap of £2,190 per month). In order to be eligible for the grant, businesses must top up to at least 80% of salary
  • in October, the reimbursement will drop to 60% of salary (to a cap of £1,875 per month). In order to be eligible for the grant, businesses must top up to at least 80% of salary.

We are still awaiting the updates to the Treasury Direction and the Employer’s Guidance which are expected by 12 June.

Contact our HR Consultants today

If you need specific advice or would like further information, please get in touch with our specialist team by filling out our online enquiry form or by calling 0333 222 0989.


This information is correct at 11.00am on 1 June 2020.

    Close

    How can we help you?


    Please fill in the form and we’ll get back to you as soon as possible or to speak to one of our experts call
    0333 222 0989





    I accept that my data will be held for the purpose of my enquiry in accordance with Ashtons
    Privacy Policy.

    This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

    How can we help?

    If you have an enquiry or you would like to find out more about our services, why not contact us?