Rishi Sunak to extend furlough scheme to end of March

Coronavirus Job Retention Scheme.

The chancellor said his intention was "to give businesses security through the winter, the security we are providing will protect millions of jobs," he added.

The furlough scheme, or Job Retention Scheme, subsidises the wages of people who cannot do their jobs, either because their workplace is closed or because there is no longer enough work for them.

What has changed?

Following our last update late October that Coronvirus Job Retention Scheme is closing and Job Support Scheme is starting, we are updating you that the government has decided the following:

• Continue Job Retention Scheme up to March 2021
• The government will review the scheme in January 2021
• The employer can claim 80% of hours not worked
• Job Support Scheme is withdrawn
• Job Retention Bonus is withdrawn

Who can Claim?

Employers do not need to have used the CJRS previously. Employers across the UK can claim, whether their businesses are open or closed.

HMRC will publish details of employers who make claims under the extended CJRS scheme, starting from December

Which Employees will be eligible?

Employers can claim for employees who were employed and on their PAYE payroll on 30 October 2020. The employer must have made a PAYE Real Time Information (RTI) submission to HMRC between the 20 March 2020 and 30 October 2020, notifying a payment of earnings for that employee.

Employees do not need to have been furloughed under the CJRS previously.

Employees can be furloughed where they are unable to work because they:

• are shielding in line with public health guidance (or need to stay at home with someone who is shielding)
• have caring responsibilities resulting from coronavirus, including employees that need to look after children