Coronavirus Job Retention Scheme extended by one month to reflect continuing social distancing measures.

The government’s unprecedented furlough scheme that is keeping millions of people in jobs will be extended for a further month, Chancellor of the Exchequer Rishi Sunak confirmed today.

Following on from yesterday’s announcement to keep the social distancing measures in place, Rishi Sunak said the Coronavirus Job Retention Scheme (CJRS) would now be open until the end of June – providing businesses with the certainty they need. Strict limits on daily life, including requiring people to stay at home, shutting many businesses and preventing gatherings of more than two people, were introduced on 23 March as the government tried to limit the spread of coronavirus.

The scheme, which allows firms to furlough employees with the government paying cash grants of 80% of their wages up to a maximum of £2,500, was originally open for three months and backdated from the 1 March to the end of May. However, the Chancellor said he would keep the scheme under review and extend it if necessary.

“We’ve taken unprecedented action to support jobs and businesses through this period of uncertainty, including the UK-wide Job Retention Scheme,” the Chancellor said. “With the extension of the coronavirus lockdown measures yesterday, it is the right decision to extend the furlough scheme for a month to the end of June to provide clarity. It is vital for people’s livelihoods that the UK economy gets up and running again when it is safe to do so, and I will continue to review the scheme so it is supporting our recovery.”

The government has already published a step by step guide for employers on the CJRS. The scheme will open on 20 April for claims. To make a claim for your employees, you must gather the following information:

1. The number of employees being furloughed
2. The dates employees have been furloughed to and from
3. Details of employees – the name and National Insurance Number of each furloughed employee
4. Your employer PAYE scheme reference number
5. Your Corporation Tax Unique Taxpayer Reference, Self-Assessment Unique Taxpayer Reference or Company Registration Number as appropriate for your entity
6. Your UK bank account details
7. Your organisation’s registered name
8. Your organisation’s address

Example calculation for an employee on a fixed salary is provided in the guidance.

The government has taken unprecedented action to help the economy and society bridge a period of national emergency so that as many people as possible can get back to work as the situation improves. Besides the CJRS, employers can apply for financial support under the Coronavirus Business Interruption Loan Scheme (CBILS) to compensate for their lost revenues during the coronavirus outbreak.

Future decisions on the CJRS will take into account further developments on the wider measures to reduce the spread of coronavirus as well as the responsible management of the public finances.

Related Articles