The Chancellor has announced the Coronavirus Job Retention Scheme will be extended for four months, until the end of October. It had been due to finish at the end of June.
There will be no changes made to the details of the scheme until the end of July.
From August there will be a number of changes, the details of which have yet to be revealed. What is known is that employees will continue to receive 80% of their monthly wages up to £2,500, but the employer will need share of the cost of salaries with the government.
Other changes to the scheme from August include allowing employers to bring furloughed employees back part-time. This is with the aim of providing a more flexible approach for businesses bringing staff back to work safely and manage social distancing requirements. At the moment the scheme only subsidises workers who are not working at all.
There have been no announcements in relation to any extension of support for the self-employed but the Chancellor has said he keeping those measures under review.
More details about the extended furlough period can be found here on the GOV.UK website.
If you are a GWA payroll client and have not already done so, please do contact us should you want us to claim on your behalf. If you wish to claim directly for your employees, guidance can be found here on the GOV.UK website.
Further details in relation to the extension are expected before the end of the month.
We understand this latest announcement may raise many questions. We are here to help and please do get in touch should you have any queries in relation to the job retention scheme or furlough.
All the latest updates or business support measures announced to date can be found on the News section of our website.
Information correct as of 12 May 2020