Changes to the UK Coronavirus Job Retention Scheme, which was put into place in March, will end in October with changes going live from the 1st September.
Here’s what you need to know:
Since the scheme began 1000’s of furloughed employees have been entitled to claim 80% of their wages up to £2500 per month but with the scheme coming to an end, some changes are happening before it does.
September – Employees will still be entitled to 80% of their wages, however, the Government’s grant will decrease to only cover 70% of furloughed wages at a decreased cap of £2,187.50 companies will need to cover the extra 10% to ensure employees are still receiving their wage at 80%.
October – The Government will decrease the scheme further to cover 60% of furloughed employee wages at an even further decreased cap of £1,875.
The scheme will end on October 31st.
Job Retention Bonus
The government has also put into place a Job Retention Bonus to encourage firms to retain staff who have been brought back to work from furlough.
Payments of £1,000 will be made for each returned furloughed employee who remains employed from November through to the end of January 2021.