Chancellor announces changes to Job Retention Scheme

Chancellor Rishi Sunak has announced changes to the government’s Coronavirus Job Retention Scheme (JRS), which will be slowly wound down between July and October.

These changes mean businesses will be able to bring furloughed employees back on a part-time basis from 1st July. Furloughed staff will continue to get 80% of their salary until the scheme finishes at the end of October. However, employers will be expected to gradually contribute more towards furloughed employees’ salaries.

The taxpayer contribution will remain at 80% during August, but employers will have to pay national insurance and employer pension contributions.

In September, employers will be asked to start paying 10% towards their employees’ wages, which will rise to 20% in October.

The Job Retention Scheme closed to new entrants from 30th June and more critically 10th June was the last date by which an employee could be put on furlough for the first time.

Dame Carolyn Fairbairn, Director-General at the Confederation of British Industry, said:

“Introducing part-time furloughing as more stores and factories start to open will help employees to return to work gradually and safely. Many more businesses will feel supported during this vital restart phase.

Firms understand the scheme must close to new entrants at some point and that those using it in future will need to make a contribution to help manage the costs.

However, previously viable firms not able to open until later, particularly in leisure, hospitality and the creative industries, may need further assistance in the coming months.”

Samantha Bennett, of Harvey, Telford & Bates comments:

“With these deadlines approaching, it is essential that as many businesses as possible are aware of how the Job Retention Scheme will continue to work and how to help their business move forward and successfully with the new restrictions in place.

At Harvey, Telford and Bates, we can help you understand the details of the Job Retention Scheme as well as advise your business.”

For more information on how our team can help you understand the JRS scheme, please call us on 01743 462604, or email hello@htbaccountants.co.uk.

For more information on the Coronavirus Job Retention Scheme, visit the Gov.uk website here.

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