Furlough Scheme Update
Changes to the Coronavirus Job Retention Scheme from 1st October 2020 mean that employers will need to fund 20% of furloughed employees’ usual wages for the hours they do not work and continue to pay their National Insurance and pension contributions. The scheme closes on 31st October and any final claims will need to be made on or before 30 November.
The Jobs Support Scheme will replace the current furlough scheme when it ends on October 31st. The scheme, which will run for six months from November, is available to employees who work and are paid for at least one-third of their normal hours. The government, together with employers, will then cover the final two-thirds of pay. All small and medium-sized businesses are eligible for the scheme, even if they have not previously furloughed. Only larger businesses whose turnover has fallen as a result of the pandemic will be eligible.
The Jobs Retention bonus offers firms:
MPs on the Treasury Select Committee said the £1,000 bonus would mostly be spent on employees who were going to be kept on anyway.