As the government looks to reopen the economy, it has reaffirmed its support for businesses by extending the Coronavirus Job Retention Scheme (CJRS).
Four months’ extension
The scheme will now run until October 31 with furloughed workers continuing to receive 80% of their current salary, up to £2,500 a month. We welcome this news, which will avoid a cliff-edge change at the end of June and shows that the government has been listening to the business community.
Until the end of July, the CJRS will continue in its current format. From August 1, greater flexibility means that furloughed workers will be able to return to work on a part-time basis.
At this point, employers will pay towards the salaries of staff they have furloughed under the scheme. These payments will substitute the contribution that the government is currently making and will ensure that workers receive 80% of their salary, up to £2,500 a month.
Further details on how the revised scheme will be implemented and the employer contribution are expected by the end of May. The government will also explore ways to support furloughed workers who are keen to do additional training or learn new skills.
Chancellor Rishi Sunak sees the extension to the CJRS as a way of ensuring a measured return to work. He is committed to providing added flexibility for businesses whist protecting livelihoods and the country’s future economic prospects.
The latest government statistics show that the Coronavirus Job Retention Scheme has protected the jobs of 7.5 million workers and provided a lifeline for almost 1 million businesses.
For advice on implementing the CJRS call us on 01785 243276.