COVID-19: the Chancellor announced changes to the Coronavirus Job Retention Scheme (CJRS) on 29 May 2020. The scheme currently extends until the end of October 2020. Under taper provisions, furloughed employees will be able to work part-time and employers will begin to contribute to Employers' National Insurance (ERs NI).
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March to August |
30 June |
1 July |
1 August |
September |
October |
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Furlough wages: government contribution |
Government pays 80% of furloughed workers’ wages up to a cap of £2,500 per month. |
Government pays 80% of furloughed workers’ wages up to a cap of £2,500 per month. |
Government pays 80% of furloughed workers’ wages up to a cap of £2,500 per month. |
Government pays 70% of wages up to a cap of £2,187.50 per month. |
Government pays 60% of wages up to a cap of £1,875 per month. Employers will pay ERs NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500 per month. |
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Furlough wages: employer contribution |
Employer pays 10% of wages (to make up to 80%). |
Employer pays 20% of wages (to make up to 80%). |
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ERs NICS & pensions |
Government pays |
Employer pays |
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Other key changes |
The scheme will close to new entrants. |
Part-time work possible whilst furloughed. |
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Minimum claim period |
3 weeks |
1 week |
Key points
- Employers pay employees for the hours they work. Government funding is only given for non-working (furloughed) employees.
- As with the previous version of the Coronavirus employee job retention scheme, employers are still able to choose to top up employee wages above the scheme grant at their own expense if they wish.
- Previously furloughed employees may commence part-time work for their employers from 1 July. Employers can claim the grant for the hours their employees are not working calculated by reference to their usual hours worked in a claim period.
- Further details will be included in future guidance from the government.
- From 1 July, claim periods will no longer be able to overlap months and employers who previously submitted claims with periods that overlapped calendar months will no longer be able to do this.
- The minimum claim period will be reduced to 1 week from 1 July. This gives employers total flexibility over work rotas. All details must be agreed in writing with the employee.
- Employers will be required to submit data on the usual hours an employee would be expected to work in a claim period and the actual hours worked.
Scheme closure to new entrants
- 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 three-week period prior to 30 June.
- This means that the final date by which an employer can furlough an employee for the first time will be the 10 June, in order for the current three-week furlough period to be completed by 30 June.
- Employers will have until 31st July to make any claims in respect of the period to 30 June.
- From 1 July the scheme will only be available to employers that have previously used the scheme in respect of employees they have previously furloughed.
- From 1 July, claim periods will no longer be able to overlap months. Employers who previously submitted claims with periods that overlapped calendar months will no longer be able to do this. This is necessary to reflect the forthcoming changes to the scheme.
- The number of employees an employer can claim for in any claim period cannot exceed the maximum number for which they have already claimed under the current CJRS.
- Employers can continue to make claims in anticipation of an imminent payroll run, at the point payroll is run or after payroll has been run.
- Employers will be able to make their first claim under the new part-time work scheme from 1 July.
Employees who believe they are not getting their 80% share can also report any concerns to the HMRC fraud hotline.
Useful links
COVID-19: Coronavirus Employee Job Retention scheme
Our guide to the scheme
COVID-19: Company Directors & Shareholders
Details of support for officers and owners
External links
HM Treasury: Next steps for Coronavirus Job Retention Scheme