Coronavirus Job Retention Scheme

From 1 July 2020, businesses will be given the flexibility to bring previously furloughed employees back part time. This is a month earlier than previously announced to help support people back to work.

From August 2020, the level of the grant will be slowly tapered to reflect that people will be returning to work:
• In 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 for the hours the employee doesn’t work. Employers will have to pay employees for the hours they work.
• In August, the Government will pay 80% of wages up to a cap of £2,500 and employers will pay ER NICs and pension contributions for the hours the employee does not work - 5% of average gross employment costs of those currently furloughed.
• In September, the Government will pay 70% of wages up to a cap of £2,190 for the hours the employee does not work. Employers will pay ER NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500.
• In October, the Government will pay 60% of wages up to a cap of £1,875 for the hours the employee does not work. Employers will pay ER NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500.
The cap will be proportional to the hours not worked. To enable the introduction of flexible furloughing, and support those already furloughed back to work, claims from July onwards will be restricted to employers currently using the scheme and previously furloughed employees. The number of employees an employer can claim for in any claim period cannot exceed the maximum number they have claimed for under any previous claim under the current CJRS.

The scheme will close to new entrants on 30 June, with the last three-week furloughs before that point commencing on 10 June for new entrants.

From 1 July, employers can bring back to work employees that have been furloughed for any amount of time and any shift pattern, while still being able to claim CJRS grant for the hours not worked. Employers will need to agree any flexible furlough arrangements with employees, and when claiming the CJRS grant will need to report and claim for a minimum period of a week.

For more information visit https://www.gov.uk/government/news/chancellor-extends-self-employment-support-scheme-and-confirms-furlough-next-steps