Further support has been announced for employers for November 2020:
The furlough scheme - officially known as the Coronavirus Job Retention Scheme - had been due to end on 31 October. However, the Prime Minister has announced that it will keep running until December (date to be confirmed) - and the new Job Support Scheme, which had been scheduled to start on Sunday 1 November, has been postponed until the furlough scheme ends.
The Coronavirus Job Retention Scheme was considerably more advantageous than the new Job Support Scheme, therefore we welcomed this extension for any businesses with employees (including directors).
Full details of the extension of the furlough scheme are to be released, however this is the information to date:
- The furlough scheme will now run 'until December'. The Treasury hasn't given a precise end date, though the Chancellor Rishi Sunak tweeted that it would run "another month".
- Employees on furlough will continue to get 80% of their salary, up to £2,500/mth. This 80% will be paid by the state, which mirrors the state's contribution in August - employers won't need to contribute to your wages for the time you spend furloughed and need only cover pension and national insurance contributions.
- Employers across the UK can use the scheme - even if they haven't before. It is open to small or large employers, and those which are charitable or not-for-profit - and crucially your employer does not previously need to have used the furlough scheme.
- Employees DO NOT need to have been furloughed before to take part. However you do need to have been on your employer's PAYE payroll on 30 October to be eligible. (To be precise, your employer must have made a Real Time Information payroll submission on your behalf on or before 30 October).
- Employees WILL be able to work part-time while on furlough, as now. Employees can either be placed on furlough full time, or able to work part-time and be furloughed for the hours they do not work. Presumably your employer will have to cover your wages at the normal rate for any hours you do work – this is to be confirmed by the Treasury.
- Employees on all types of contract can take part. We're assuming this means that eligibility will be the same as furlough, so those on zero hours contracts and fixed-term contracts, as well as agency workers, will be included - though again, we are checking the details with the Treasury.
For further advice please do not hesitate to contact us
