On 29 May 2020, several changes were announced to the Coronavirus Job Retention Scheme (CJRS) as part of the extension until the end of October 2020.
This page details the amendments and extension to the Scheme for the second period, and the details following the announcement of the the current and original Scheme can be found here.
Updates announced on 29 May 2020
As part of the announcements made by the Chancellor on 29 May 2020, it was confirmed that the Scheme would be extended to the end of October 2020, but whilst ensuring that businesses were supported for those staff who were unable to work as a result of the current crisis, there was a new focus on supporting businesses to bringing their previously furloughed staff back to work.
The current scheme would continue to apply until the end of July, with amendments coming into effect from 1 August 2020.
Scheme closed to new Entrants from 1 July 2020
The existing furlough scheme will be closed to new entrants from 30 June 2020.
This means that the final date by which an employer can furlough an employee for the first time will be 10 June, in order for the current 3 week furlough period to be completed by 30 June. Employers will have until 31 July to make any claims in respect of the period to 30 June.
Only those who have previously been furloughed will be eligible to be furloughed again after 1 July.
The proposed changes also introduce a new limit to the number of staff who can be included on a claim, based upon the maximum number of staff included in any previous claim up to the end of June.
Changes introduced after 1 August 2020
After 1 August 2020, CJRS grant will no longer cover the cost of employers’ national insurance or pension contributions with employers required to cover these costs.
From 1 September 2020, employers will also have to pay 10% of employees' wages (with the Scheme paying 70% up to a cap of £2,187.50),
From 1 October 2020, this will increase to employers paying 20% (with the Scheme paying 60% capped at £1,875).
Part-time Furlough
From 1 July, HMRC are encouraging employers to bring employees back to work, if they have been previously furloughed with the introduction of the ‘part-time furlough’.
Previously furloughed employees will be able to return to work on a part-time basis if required, and employers will still be able to claim CJRS grant for their normal hours not worked.
The new calculation will apply from 1 July to factor in the cost of hours worked to hours furloughed ratio. Employers can claim the grant for the hours their employees are not working calculated by reference to their usual hours worked in a claim period. Employers will need to report hours worked and the usual hours an employee would be expected to work in a claim period. Further details will be included in future guidance.
When claiming the CJRS grant for furloughed hours employers will need to report and claim for a minimum period of a week.
Closure of the CJRS
It was confirmed that the CJRS would close on 31 October 2020.