After announcing on Saturday that the Coronavirus Job Retention Scheme (aka the furlough scheme) would operate until 2 December, today, Chancellor Rishi Sunak took everyone a little by surprise and announced an intended extension of furlough until the end of March.
- Furloughed employees will receive 80% of their wages paid by the government, up to a maximum of £2,500 per month.
- There will be a review in January to see whether employer contributions will need to begin again, with the employer just having to foot the bill for Employer’s NIC and pension contributions until then.
- The end of January Job Retention Bonus will be moved to a later date (for people kept on after furlough).
- Claims for the extended Job Retention Scheme can be made from next Wednesday (11 November).
- Employees need to have been on a payroll RTI submission before 23.59 on 30 October.
- Employers can re-employ employees, if they were employed up until 23 September and be able to furlough under the scheme.
- Support for the self-employed will also increase for this period, back to summer levels of 80% of average profits, capped at £7,500 for a three-month period.
We’re still awaiting further details of the extension to the scheme to be confirmed, and will of course keep you updated.
You can also join Inspire Founder, Warren Munson, Director, Chris Downing and Kate Brooks, Partner and Head of Employment at Ellis Jones, for webinar on Thursday 12 November at 2pm for the latest updates to the furlough scheme and your questions answered. Email us now to book your place.