The Government has announced that the Job Retention Scheme will be extended for four months until the end of October. Until the end of July, there will be no changes to the scheme.
From August to October the scheme will continue, for all sectors and all regions of the UK, but with greater flexibility to support the transition back to work. Employers currently using the scheme will be able to bring back furloughed employees part time. The Government will ask employers to start sharing, with the Government, the costs of paying people’s salaries.
Workers will, through the combined efforts of Government and employers, continue to receive the same level of support as they do now, at 80% of their salary, up to £2,500.
Further detail will follow by the end of May.
Read more here.
Your employer is responsible for claiming through the Job Retention Scheme on your behalf and for paying you what you are entitled to. You cannot apply for the scheme yourself.
Both you and your employer must agree to put you on furlough. Once agreed your employer must confirm in writing that you have been furloughed to be eligible to claim.
Any employer with a UK payroll and a UK bank account will be able to claim, but you must have been on your employer’s PAYE payroll before or on 19 March 2020, the day before the scheme was announced. This cut-off date has recently been extended to ensure the scheme helps as many people as possible. You can be on any type of contract, including a zero-hour contract or a temporary contract.
How much you will receive
Your employer will get a grant to cover 80% of your regular wages, up to a maximum of £2,500. Firms will be eligible for the grant from the date you ceased work, from 1 March. Your employer:
- will pay you at least 80% of your regular monthly wages, up to a maximum of £2,500, as your wage
- can claim for a minimum of 3 consecutive weeks and for up to 3 months - but this may be extended
- can choose to pay you more than the grant - but they do not have to
- cannot choose to pay you less than the grant
You will still pay Income Tax, National Insurance contributions, Student Loan repayments and any other deductions (such as pension contributions) from your wage.
While you are on furlough
Once you are on furlough you will not be able to work for your employer. You can undertake training or volunteer subject to public health guidance, as long as you’re not:
- making money for your employer or a company linked or associated to your employer
- providing services to your employer or a company linked or associated to your employer
To check if you could be covered by the Coronavirus Job Retention Scheme and to read the guidance click here.