Coronavirus Job Retention Scheme Extended

On Saturday the Prime Minister announced that the Job Support Scheme, that was due to replace the Coronavirus Job Retention Scheme (known as furlough) on the 1st November, was being postponed until the furlough scheme ends, currently expected to be in December.

What a difference a week makes!

Instead the Coronavirus Job Retention Scheme will remain open until December, with employees receiving 80% of their current pay for hours not worked, up to a maximum of £2,500. Under the extended scheme the cost to the employer is therefore lower than in recent months as the level of grant mirrors levels available back in August (i.e. prior to the reduction to 70% and 60% in September and October respectively). I can confirm that the scheme will not cover the cost of the Employers NIC or pension costs.

This is a very welcome move for those Employers who could be impacted by the new lockdown measures as the assistance increases on a scheme that has become familiar throughout the pandemic.

The extended scheme is open to all Employers even if they have not previously used the scheme. This is also the case for Employees whose only eligibility criteria is that they must have been included on a Real Time Information (RTI) submission made on or before the 30th October 2020.

All other criteria remain the same as the existing Coronavirus Job Retention Scheme. Therefore, staff can be fully furloughed or flexible furloughed as before.

Just a quick reminder that all claims for the period up to 31st October must be submitted to HMRC by the end of November, we cannot see that this has changed with the scheme extension.


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