As a result of the second national lockdown the Chancellor decided to extend the Coronavirus Job Retention Scheme (CJRS). On 5 November Rishi Sunak attended the House of Commons to clarify to our MPs what his plans were and how the exchequer was now planning to offer ‘significant extra support to protect jobs and livelihoods in every region and nation of the UK’.
The Coronavirus Job Retention Scheme will now run until the end of March 2021, guaranteeing employees who meet the eligibility criteria 80% of their current salary for hours not worked. For those who are self-employed there is good news too, the self-employed income scheme support grant is set to increase from 55% to 80% of average profits..
Unfortunately the Job Retention Bonus will not be paid in February, as previously announced, due to the extension of the CJRS but will instead be paid ‘at the right time’.
Mr. Sunak commented that the economic effects are much longer lasting for businesses than the duration of any restrictions, which is why the Exchequer have decided to go further with the support, by extending furlough and increasing the percentage of grant to the self-employed will protect millions of jobs and give people and businesses the certainty they need over what will be a difficult winter.’
It is worth noting that at the moment there is no employer contribution required to wages for hours not worked. Employers will be required to ensure that National Insurance and employer pension contributions for hours not worked are paid.
As we mentioned in our previous update the CJRS extension will be reviewed in January with a view to extension or reduction.
If you need advice or further info on Furlough, the JRS, or any other Covid-19 support schemes please don’t hesitate to give us a call or visit our website.
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