Chancellor Rishi Sunak has announced reforms to the Coronavirus Job Retention Scheme. We are awaiting updates to the Treasury Direction and the Employer's Guidance - and the devil will always be in the detail - but these are the headline points announced at his press conference (with additional details from HM Treasury's Twitter feed) in the last half hour:
- 10 June 2020 will be the last day that employers can place employees on furlough.
- from 1 July, 'flexible furlough' is being introduced, meaning employees will be able to work part-time and be furloughed part-time. Businesses will decide how that will work (in terms of the time split).
- from 1 August, employers will have to pay employee's national insurance contributions and pension contributions, and can no longer reclaim them through the CJRS.
- from 1 September, the government will only reimburse 70% of salary (up to a maximum of £2,190). Employers are required to top-up to 80% (or more, depending on what the employer agreed with the employee).
- from 1 October, the government will only reimburse 60% of salary (up to a maximum of £1,875), and employers will continue having to top up to 80% (or more).
- the furlough scheme will close on 31 October 2020.
- the self-employed grant is being extended, with applications opening in August for a second and final grant. There will be parity with the reducing furlough scheme, paying 70% (not 80%) of average earnings up to £6,750