Brewers Chartered Accountants

Chancellor introduces "flexible furlough"

On 12 May 2020, the Chancellor, Rishi Sunak, announced the extension of the Coronavirus Job Retention Scheme (CJRS).

The scheme was introduced at the beginning of lockdown and, so far, has helped one million employers across the UK to furlough 8.4 million jobs.

The CJRS was due to run until the end of June, but has now been extended until October. However, there have been some amendments made to the scheme:

  • The scheme is now closed to new entrants – only employees who were furloughed on or before 10 June are still eligible for the scheme.
     
  • From 01 July 2020 businesses will have the flexibility to bring furloughed workers back part time. This is a month earlier than planned in order to support people back to work.

    Individuals firms will be able to decide on the hours and shift patterns of their returning employees, allowing them to decide on the best approach for them. Importantly, the employer will be responsible for paying the employees’ wages while they work.

     
  • Finally, although the CJRS has been extended, a taper scheme will come into force from August 2020 that will see employers having to contribute to make up 80% of their furloughed workers’ wages. The table below sets out how the taper scheme will work

 

 

Get in touch

If you have any further questions on the CJRS, or any of the other measures put in place to help businesses during lockdown, give us a call on 01483 205850

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