Updated guidance on the CJRS for early years providers

Category: COVID-19Healthcare - Posted On: May 1 2020


On Friday 17 April, the UK Government provided updated guidance on the Coronavirus Job Retention Scheme (CJRS) for early years providers in England however as the CJRS is a UK-wide scheme, this will also impact providers in Scotland.

The Scottish Government is currently seeking further clarification from the UK Government on aspects of this guidance, however they have released clarification on a number of concerns raised by childcare providers:

  • There is no change to Scotland’s position on Early Learning and Childcare (ELC) payments, and these payments for funded ELC hours will continue for the duration of closures. We see these payments as a vital part of safeguarding our childcare sector for the pandemic recovery and achieving our 1,140 ambition together for Scotland’s children.
  • The guidance published on 17 April does not prevent childcare providers from receiving support through both: (1) continued payments for statutory (funded) ELC hours; and (2) the CJRS.
  • Support cannot be claimed through the CJRS for staff costs that are already covered by other forms of public funding.
  • Providers can access the CJRS to cover up to the proportion of their paybill which could be considered to have been paid from private income.
  • The guidance advises that providers should initially use the month of February 2020 to represent their usual income in calculating the proportion of its paybill eligible to be covered by the scheme. For example, if 40% of their average monthly income was from payments for the funded entitlements and 60% from other income, then they could claim CJRS support on the remaining 60% of their total paybill. This would be done by furloughing staff whose usual salary / combined salaries come to no greater than 60% of your total paybill. Therefore, they would receive 80% on the remaining 60% of their paybill through the CJRS.

If you wish to discuss this further or require any assistance with the calculations or applications process, please contact our EQ Healthcare specialists on healthcare@eqaccountants.co.uk or call any of our offices.