Government extends Coronavirus Job Retention scheme

Government extends job retention scheme

The government has extended its Coronavirus Job Retention Scheme (CJRS) until December 2020 to support those most impacted by the most recent measures put in place due to the Covid-19 (Coronavirus) pandemic. 

The government, under the new extension will pay up to 80% of employees’ wages, with a cap of ¬£2,500, while employers will pay national insurance contributions and pension contributions;¬†the same deal the government offered organisations in March to July this year, at the start of the initial lockdown.

In August, the government paid 70% of furloughed staff wages with employers paying an additional 10%. In October, employers paid 20% towards employees’ salaries, with the government covering 60% of the total cost.

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Organisations will still be able to bring back furloughed employees part-time and be responsible for paying this proportion of their wages. More details will be published in the coming days on how employers can use the updated claims service. 

The Job Support Scheme, recently announced by the government which was scheduled to begin from 1 November, will be postponed until the CJRS ends in December. 

Rishi Sunak, chancellor of the exchequer, said: “Over the past eight months of this crisis we have helped millions of people to continue to provide for their families. But now, along with many other countries around the world, we face a tough winter ahead.¬†

“I have always said that we will do whatever it takes as the situation evolves. Now, as restrictions get tougher, we are taking steps to provide further¬†financial¬†support to protect jobs and organisations. These changes will provide a vital safety net for people across the UK.”¬†