Furlough Scheme Extended
The UK government announced this week they have extended the Coronavirus Job Retention Scheme for one month, with employees receiving 80% of their current wages for hours not worked. The extension will stay open until December with maximum payments of £2500 per month. The cost for employers to retain workers is reduced greatly compared to the current scheme which was only paying 60% of wages.
There are also new provisions for businesses that are forced to close will receive grants up to £3000 per month under the new Local Restrictions Support Grant. Local authorities will also receive assistance to enable business support. Mortgage holidays that were set to end 1 November have also been extended so that people impacted by COVID are entitled to a 6-month mortgage holiday or can extend their mortgage holiday to 6 months without affecting their credit files.
Employers will be able to bring furloughed employees back to work on a part-time basis, and only need to pay National Insurance and employer pension contributions which account for 5% of employment costs.
Eligibility for businesses required to close due to new local restrictions are based on the rateable value of each business as follows:
- £15K or under, grants are £1334 per month
- £15K - £51K, grants are £2000 per month
- £51K or over, grants are £3000 per month
The UK government is providing unprecedented emergency support during this ongoing crisis, protecting more than 9 million jobs and providing more than £13 billion in support.
If you need help or support with your payroll to manage the new furlough changes, talk to us. Our CIPP-certified team and easy-to-use software platform can simplify the complicated changes. Click here to learn more