Extension to the Job Retention Scheme

As you are aware from our previous emails the Government Job Retention Scheme was due to end on 31 October 2020 and be replaced by the new Job Support Scheme.

Following on from the Prime Minister’s announcement of the second national lockdown, the Government had announced that the original Job Retention Scheme would be extended for the month of November. Today, however, the Chancellor has issued a further update to say that the scheme will now be extended for the whole of the UK up until the end of March 2021.

Although the full details of the extended scheme are yet to be published we do have the following details so far:

  • Employees will continue to receive 80% of their salary for any hours not worked, up to a maximum of £2,500 per month.
  • Employers will not need to contribute to the wages of an employee for the time they spend furloughed and only need to pay the pension and national insurance contributions
  • Crucially, as with the original scheme, any business in the UK can claim under the furlough scheme, not just those forcibly shut down under the lockdown rules as would have been the case under the new Job Support Scheme.
  • The scheme will also be open to new entrants for the first time since 1st July, and so anybody who has started their job prior to 31 October will be eligible.
  • Employers are not required to have made previous claims under the scheme and the employee does not need to have previously been furloughed.
  • Anybody made redundant after 23 September can be rehired and put back on furlough.
  • The extension is now planned to run until 31 March 2021 but will be reviewed in January.

Once further guidance is available we will issue an update with any necessary information.

Should you require any further information relating to this topic, or any other matter, please feel free to contact us.