The scheme will continue in its current form until the end of July, with changes from August to allow for more flexibility. The Government will be releasing further details on these changes at the end of May. As a team, we will strive to keep you updated during this time.
We have summarised the key points from yesterday’s announcement:
· So far, the Coronavirus Job Retention scheme has enabled 7.5 million roles to be furloughed, which may otherwise have been lost.
· The scheme is to be extended until the end of October 2020 and in total, providing a total of 8 months support across all sectors and regions in the UK.
· The Chancellor has promised that those who are currently furloughed will continue to receive the current 80% of salary, capped at £2,500 per month.
· Although the amount received by employees remains unchanged, from August, employers will not be able to claim the full 80% salary payment to their staff. Full details on how the cost of salary payments will be shared, to be detailed in May.
· From August to October employers will be able to bring currently furloughed employees back to work on a part-time basis. The new initiative is intended to help boost the economy, whilst ensuring that there will be no reduction in financial support for those employees who are brought back to work.
· Employers will be required to fund a percentage of the salary for their furloughed staff who go back to work part-time, and this payment will substitute the contribution the Government is currently funding. Comprehensive guidance will be released to provide further clarification on this complex area.
We will publish more information as soon as we have it via our blog or email updates for our clients. In the meantime, if you have any questions about the scheme or anything else, please get in touch. You can also refer to our COVID-19 support page.
Thanks for stopping by,
The Business Hut Team