Coronavirus Job Retention Scheme extended until October

Category: COVID-19 - Posted On: May 12 2020


Chancellor, Rishi Sunak, has extended the Coronavirus Job Retention Scheme (CJRS) by another four months until 31 October 2020.

In his speech on Tuesday 12 May, he confirmed that the scheme will continue in its current form until the end of July, with furloughed staff continuing to receive 80% of their salary, up to £2,500.

From August, more flexibility will be introduced. The scheme will continue for all sectors and regions and will still provide staff with 80% of their salary, up to £2,500, but to support people to get back to work, furloughed workers will be able to return to work part time. This is a change from the current format where furloughed employees cannot do any work for their employer.

However, the biggest change to take place in August is that employers will be asked to contribute towards the salaries of their part time furloughed staff to ensure that they continue to receive 80% of their salary. At this stage it has only been stated that employers will substitute the contribution the government is currently making so we await further explanation on these proposed CJRS changes.

More information and specific details on how this will work is expected by the end of May and we will provide more information as soon as this is available.

Full details from the announcement and statistics showing that businesses have benefited from over £14bn in loans and other support can be found here.

If you would like more information or advice on the CJRS or any other support measure, please get in touch with your usual EQ contact or call one of our offices.