After the latest announcement, the government has extended the financial support available through the extended Job Retention Scheme (Furlough). The scheme will continue until December, with employees receiving 80% of their current salary for hours not worked, up to a maximum of £2,500.
The Gov.uk website provides information on the support available for employers, as the extended scheme will have a reduced cost for employers compared to the previous scheme.
Job Retention Scheme
“Businesses will have flexibility to bring furloughed employees back to work on a part time basis or furlough them full-time, and will only be asked to cover National Insurance and employer pension contributions which, for the average claim, accounts for just 5% of total employment costs.”
- Businesses being paid upfront to cover wages costs. There will be a short period when we need to change the legal terms of the scheme and update the system and businesses will be paid in arrears for that period.
- Flexible furloughing will be allowed in addition to full-time furloughing.
- The Job Support Scheme will be introduced following the end of the CJRS.
Businesses required to close in England due to local or national restrictions will be eligible for the following:
- For properties with a rateable value of £15k or under, grants to be £1,334 per month, or £667 per two weeks;
- For properties with a rateable value of between £15k-£51k grants to be £2,000 per month, or £1,000 per two weeks;
- For properties with a rateable value of £51k or over grants to be £3,000 per month, or £1,500 per two weeks.
(The Job Support Scheme has been postponed until the furlough scheme ends – look out for our up to date blog coming soon)