Coronavirus Update – Furlough Scheme Extended

On Saturday, the Government, having already announced a lockdown that will affect England from 5^th November until December, announced further economic measures to support the UK economy and to try to help employers retain staff.

Ordinarily, from 1 November the Job Support Scheme (“JSS”) would have been introduced.

However, because of the lockdown measures, the Government have extended and amended the Coronavirus Job Retention Scheme (“CJRS”) (“furlough”).

The key announcements are noted below;

1. The CJRS is extended until December

 

2. The level of the grant will be 80% of wages subject to a cap of £2,500

 

3. Flexible furloughing of staff will continue in addition to full time furloughing of staff

 

4. The employer will have to pay the NIC and Pension contributions for the hours that the member of staff does not work

 

5. Eligible employees must have been on the employers payroll at 23.59 on 30^th October 2020

The Government were caught somewhat by events over the weekend such that details of these proposals have yet to be finalised in Parliament and therefore this announcement made was not supported with details.

To the extent that the CJRS terminates in December, the Job Support Scheme will be introduced.

Comment

There is no such thing as a forward plan at present with events conspiring to “move goalposts” on a regular basis. We are clear that dealerships are to close from Thursday (car showrooms) but further details may enable service departments to remain open?

These continue to be difficult times both businesses, individual employees and society as a whole.

We can only be pleased that the English economy remains in a position to support as many people as it does; where this all ends up in future is anyone’s guess.

If you need any further details please contact us at chris.cummings@ase-global.com.

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