Protecting Jobs and Businesses by Extending the Coronavirus Job Retention Scheme
Our Coronavirus Job Retention Scheme has protected millions of jobs and businesses across the UK during the outbreak – and the Chancellor has been clear that he wants to avoid a cliff edge and get people back to work in a measured way.
The scheme is just one part of our world-leading economic response to coronavirus. As we move into the second stage of our response, we are focussed on not just on saving lives, but also saving livelihoods. That’s why we are taking unprecedented action to support businesses, jobs and our economy.
The Chancellor has today announced that the scheme will be extended until the end of October, a further four months. Until the end of July, workers will continue to receive 80 per cent of their current salary, up to £2,500 a month. From the start of August, the scheme will be more flexible, and furloughed workers will be able to return to work part-time with employers being asked to contribute towards some of the costs of their salaries.
We will continue to do everything we can to ensure people can pay their bills and put food on the table. So as we begin to recover and return to our way of live, it is vital that we all stay alert, so we can control the virus and save lives.
We are supporting businesses and protecting people’s jobs by extending the Coronavirus Job Retention scheme by four months, until the end of October. The Government will continue to support all employers by providing 80 per cent of furloughed employees’ salaries, up to £2,500 a month until the end of July
The scheme updates mean that the following will apply for the period people are furloughed:
- June and July: The government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance (ER NICS) and pension contributions. Employers are not required to pay anything.
- August: The government will pay 80% of wages up to a cap of £2,500. Employers will pay ER NICs and pension contributions – for the average claim, this represents 5% of the gross employment costs the employer would have incurred had the employee not been furloughed.
- September: The government will pay 70% of wages up to a cap of £2,187.50. Employers will pay ER NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500. For the average claim, this represents 14% of the gross employment costs the employer would have incurred had the employee not been furloughed.
- October: The government will pay 60% of wages up to a cap of £1,875. Employers will pay ER NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500. For the average claim, this represents 23% of the gross employment costs the employer would have incurred had the employee not been furloughed.
See the attached factsheet for more information
