Chancellor Rishi Sunak has confirmed that he will extend the Coronavirus Job Retention Scheme (also known as the Furlough Scheme) until the end of March 2021.
Employees will receive 80% of their current salary for hours not worked, up to a maximum of £2,500.
The job retention scheme will be extended at 80% until the 31st March 2021 and support for the self-employed will double to 80% of average profits last year, up to a cap of £7,500, covering the November to January period. The policy will next be reviewed in January.
Under the new scheme, the cost for employers of retaining workers will be reduced compared to the previous scheme, that ended on the 31st of October.
Businesses forced to close in England will receive grants worth up to £3,000 per month under the Local Restrictions Support Grant. £1.1bn is being given to Local Authorities, distributed on the basis of £20 per head, for one-off payments to enable them to support businesses more broadly.
What the Government pays: 80% of wages up to a cap of £2,500 for the hours not worked by the employee.
What employers pay: Hours worked in the normal way, National Insurance Contributions & Pension Contributions. Employers can also choose to top up employee wages above the scheme grant at their own expense if they wish.
Employers will not need to contribute to wages for the time an employee spends furloughed.
Flexible furloughing will be allowed as well as full-time furloughing.
- All employers with a UK bank account and UK PAYE schemes can claim the grant.
- Employers small or large, charitable or non-profit, are eligible for the extended Job Retention Scheme, which continues for another month.
- Neither the employer nor the employee needs to have previously used the Coronavirus Job Retention Scheme.
- Employees must be on an employer's PAYE payroll by 23:59 30th of October 2020. A Real Time Information (RTI) submission notifying payment for that employee to HMRC must have been made on or before the 30th of October 2020.
- Employees can be on any type of contract.
Businesses required to close in England due to local or national restrictions will be eligible for the following grants:
- For properties with a rateable value of £15k or under, grants to be £1,334 per month, or £667 per two weeks;
- For properties with a rateable value of between £15k-£51k grants to be £2,000 per month, or £1,000 per two weeks;
- For properties with a rateable value of £51k or over grants to be £3,000 per month, or £1,500 per two weeks
What else can businesses get?
- Up to £3,000 per month under the Local Restrictions Support Grant if their premises is forced to close
- £1,000 for every furloughed employee kept on until at least the end of January
- £1,500 for every out-of-work 16-24-year-old given a ''high quality'' six-month work placement
- £2,000 for every under-25 apprentice taken on until the end of January, or £1,500 for over-25s