Changes to the Coronavirus Job Retention Scheme (12 June 2020)
The government announced further details of the changes that were previously announced to the job retention scheme.
These changes were announced with a view to coincide with the relation of the lockdown rules and to enable employers to bring back employers gradually in line with this.
It also has the effect of reducing the financial burden on the Government, which is not sustainable at the levels of CJRS being paid by them.
Below is a summary of the main changes.
The biggest change is that from 1 July, employers can (although this is not a requirement) bring furloughed employees back to work for any amount of time and any shift pattern, while still being able to claim CJRS grant for the hours not worked.
Only previously furloughed employees can be furloughed from 1 July 2020.
The Coronavirus Job Retention Scheme will close on 31 October 2020.
For the period remaining where claims are possible the level of support which reduce month by month, irrespective of whether the employee is working or not. The timetable for changes to the scheme is set out below.
Wage caps are proportional to the hours an employee is furloughed. For example, an employee is entitled to 60% of the £2,500 cap if they are placed on furlough for 60% of their usual hours:
- There are no changes to grant levels in June.
- For June and July, the government will pay 80% of wages up to a cap of £2,500 for the hours the employee is on furlough, as well as employer National Insurance Contributions (ER NICS) and pension contributions for the hours the employee is on furlough. Employers will have to pay employees for the hours they work.
- For August, the government will pay 80% of wages up to a cap of £2,500 for the hours an employee is on furlough and employers will pay ER NICs and pension contributions for the hours the employee is on furlough.
- For September, the government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed.
- For October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed.
- The first time you will be able to make claims for days in July will be 1 July, you cannot claim for periods in July before this point.
- 31 July is the last day that you can submit claims for periods ending on or before 30 June.
Employers will continue to able to choose to top up employee wages above the 80% total and £2,500 cap for the hours not worked at their own expense if they wish. Employers will have to pay their employees for the hours worked.
The table shows Government contribution, required employer contribution and amount employee receives where the employee is furloughed 100% of the time.
Wage caps are proportional to the house not worked.
| July | August | September | October | |
| Government contribution: employer NICs and pension contributions | Yes | No | No | No |
| Government contribution: wages | 80% up to £2,500 | 80% up to £2,500 | 70% up to £2,187.50 | 60% up to £1,875 |
| Employer contribution: employer NICs and pension contributions | No | Yes | Yes | Yes |
| Employer contribution: wages | – | – | 10% up to £312.50 | 20% up to £625 |
| Employee receives | 80% up to £2,500 per month | 80% up to £2,500 per month | 80% up to £2,500 per month | 80% up to £2,500 per month |