The Chancellor has extended the Coronavirus Job Retention Scheme (CJRS) by four months to the end of October 2020 alongside a proposed relaxation of some of the scheme rules.

The CJRS was introduced at the end of March and allows employers affected by COVD-19 to furlough employees rather than making them redundant, with the government paying a grant to cover 80% of their wage costs, subject to a cap of £2,500 per month.

The current rules say that furloughed workers must not undertake any work for their employers whatsoever or the grant will not apply. From the start of August the government plans to relax the rules to allow employees back to work on a part-time basis, with the employer being asked to contribute towards the wage costs currently being borne by the government. 

More details on how the changes to the rules will work are promised by the end of May.


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