Furlough Scheme Extended
The Furlough Scheme was due to end and be replaced by the Job Support Scheme on 31st October 2020, having scaled back to cover 60% of salaries during October, but will now keep running until December.
Details confirmed by the Chancellor reveal that the scheme will retain the flexible element, but the level of government support will return to the levels given in August.
- Furloughed employees will receive 80% of their current salary for hours not worked, up to a maximum of £2,500. The grant must be paid to the employee in full.
- To be eligible to be claimed for under this extension, employees must be on an employer’s PAYE payroll by October 30, 2020. This means a Real Time Information (RTI) submission notifying payment for that employee to HMRC must have been made on or before 30th October 2020.
- Employers will pay employer NICs and pension contributions, and should continue to pay the employee for hours worked in the normal way.
- All employers with a UK bank account and UK PAYE schemes can claim the grant.
- As with the current CJRS, employers are still able to choose to top up employee wages above the scheme grant at their own expense if they wish.
- The Government will confirm shortly when claims can first be made in respect of employee wage costs during November, but there will be no gap in eligibility for support between the previously announced end-date of CJRS and this extension.
Chancellor Rishi Sunak said:
“Now, as restrictions get tougher, we are taking steps to provide further financial support to protect jobs and businesses. These changes will provide a vital safety net for people across the UK”
The scheme is UK wide and the UK Government will work with the devolved administrations to ensure the scheme operates effectively across all four nations.
Employers across the UK can use the scheme- even if they have not before.
So those in Wales, Scotland and Northern Ireland should also be able to apply, even though they are subject to different lockdown rules than those announced for England today.
Job Support Scheme:
The Scheme, which was scheduled to come in on Sunday, November 1, has been postponed until the Furlough Scheme ends.
It was announced the Job Support Scheme would run for six months – however. with the start date delayed due to the furlough extension, additional guidance will be set out shortly for the new timeframe.
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