UK General

Coronavirus Job Retention Scheme: The latest update

As the Coronavirus pandemic continues to rumble on, the economic impact of the crisis is taking its toll. With that in mind, the government’s job retention schemes to support UK businesses have been taking a lot of the strain during the lockdown.    

Indeed, as of the 31st May, £8.92bn has been deployed under the flagship Coronavirus Business Interruption Loan Scheme (CBILS), helping around 46,000 UK businesses. Meanwhile, at the last count, the Office for National Statistics said that 76% of UK companies had applied for help under the Job Retention Scheme (JRS).  

There are some changes coming down the line in the next few months in the way that the Job Retention Scheme is administered.  

The first thing to note is that the scheme is closing to new entrants from 30 June.  Bearing in mind to make a claim an employee has to be furloughed for a minimum of 3 weeks. 

June

For June, the Job Retention Scheme remains the same – 80% of wages, up to a max of £2,500, and employers NI (and contribution  towards  pension). 

July

From July, the UK government will continue to pay 80% of wages, up to a max of £2,500  and employers NI (and contribution towards  pension).  From 1st July, employers can bring back employers on a shift pattern, whilst still able to claim the grant for their normal hours not worked.  

August

From August,  continue to pay 80% of wages, up to a max of £2,500  but the employer will pay the NI and pension contributions.  

September

From September – The government will pay 70% of wages up to a max of £2,187.50 for the hours the furloughed employee does not work.  Employers will pay employer NI and pension and 10% of the employee wages to make up the 80% total (capped at £2,500).

October

From October -   The government will pay 60% of wages up to a max of £1,875 for the hours the furloughed employee does not work.  Employers will pay employer NI and pension and 20% of the employee wages to make up the 80% total (capped at £2,500). The scheme will close at the end of October. 

For more information or advice on the above, please contact us.