Just over a week ago Rishi Sunak, the chancellor, announced an update to the Corona Virus Job Retention Scheme (CVJRS). He announced the furlough scheme has again been extended. This time until the end of October.
The job retention scheme has been put in place during the COVID-19 outbreak to try and retain jobs where employers may have made redundancies. The government will cover 80% of wages up to a maximum amount of £2,500 / month of total employment costs. You can read more on our website about it here.
He said the scheme will run as it is until the end of July. But from August, employers will be expected to make a contribution.
He’s not given any more detail, only that it will arrive by the end of May. We’re going to start running consistent webinars on Friday’s, starting 29th May, for a few weeks on a variety of topics. We’ll ensure the first Friday in June will be about the furlough scheme as no doubt there’ll be questions on it.
There’s no talk of the 80% reducing to 60% which was rumoured. However, we expect the government support to be reduced gradually over the 3 months so that in November it’s less of a hit to employers.