Things move fast in 2020!
Friday night had finally seen the release of further Job Support Scheme details (JSS the successor scheme that was to run Nov-Apr), but by Saturday evening that scheme was put on the back burner, with a full extension of the existing furlough scheme (CJRS). JSS will not now take effect until the CJRS ends on 30 November.
The new restrictions in England will apply from the 5th of November to at least the 2nd of December but the financial support for employers applies from 1 November as the furlough scheme operates on full calendar months.
What support is given?
The furlough scheme has been reinstated with similar conditions as applied in August 2020.
The CJRS grant will pay for 80% of the employee’s current wages for time not worked, up to £2,500 per month. The employer must pay for all of the employer’s NIC and employer’s minimum workplace pension contributions on those wages.
The employer can top-up the employee’s furlough pay at their own expense if they wish to.
Business grants paid by local authorities for closed businesses premises will apply in England.
Which employees qualify?
Employees who were on the employer’s payroll at 30 October 2020 will qualify to be included in CJRS claim for November; they don’t have to have been included in an earlier CJRS claim. The employee must have been paid by the employer, and that payment must have been reported on an
RTI return before midnight on 30 October.
Flexible furlough will be permitted alongside full-time furlough, so staff may be brought back part-time.
The same rules for flexible furlough will continue to apply as they have done since 1 July, so the employee may be furloughed for a few days or hours per week. There appears to be no minimum time set for furloughed hours or working hours.
Which employers qualify?
All employers with a UK bank account can claim support under the extended CJRS, there is no financial test to pass for larger employers as applies for the (now postponed) JSS.
Where businesses have been required by law to close, they will be able to apply for a support grant from their English local authority, based on the rateable value of their business premises:
|Rateable value of premises||Grant payable per two weeks|
|Up to £15,000||£667|
|£15,001 to £50,999||£1000|
|£51,000 or more||£1500|