Changes to the ‘Furlough’ Scheme

Changes to the ‘Furlough’ Scheme

From 1 July, employers can bring back to work employees that have previously been furloughed for any amount of time and any shift pattern, while still being able to claim CJRS grant for their normal hours not worked. When claiming the CJRS grant for furloughed hours; employers will need to report and claim for a minimum period of a week.

The scheme will close to new entrants from 30 June. From this point onwards, employers will only be able to furlough employees that they have furloughed for a full 3 week period prior to 30 June. (In exceptional circumstances i.e. if a lady is returning from statutory maternity leave after the 30th June,  the HMRC may agree to a manual claim for the individual in these circumstances, this would have to be made by phone and is not guaranteed.)

This means that the final date by which an employer can furlough an employee for the first time will be 10 June, in order for the current 3 week furlough period to be completed by 30 June. Employers will have until 31 July to make any claims in respect of the period to 30 June.

Further guidance on flexible furloughing and how employers should calculate claims will be published on 12 June. Find out more information on how the Coronavirus Job Retention Scheme is changing.

Other main changes start in August when the level of support will begin to reduce and businesses will have to contribute.

  • August – The government will pay 80% of wages up to a cap of £2,500, but employers will start to pay national insurance and pension contributions
  • September – The government will pay 70% of wages up to a cap of £2,190, with employers paying 10% of wages as well as contributions
  • October – The government will pay 60% of wages up to a cap of £1,875, with employers paying 20% of wages plus contributions