The Coronavirus Job Retention Scheme was put in place to support employers.
Croner-i looks at the changes to the scheme this month and beyond
From September, the government’s contribution to wages decreases to cover 70% of furloughed employees’ wages at a reduced cap of £2187.50. Employers are now expected to top up the remaining 10%, up to a maximum of £312.50 per month.
From 1 October, in the final month of the scheme, the government will only cover 60% of furloughed employee wages at a cap of £1875, meaning employers will need to top up the remaining 20%.
As an incentive for employers to retain staff after the scheme comes to an end, the government has established the Job Retention Bonus. Under this, employers will receive a bonus of £1,000 for every employee who was previously furloughed and is kept on until at least 31 January 2021, provided they meet the following eligibility criteria:
- They have been continuously employed by the company from the time of the company’s most recent claim for that employee until at least 31 January 2021
- They have been paid an average of at least £520 a month between 1 November 2020 and 31 January 2021. The employee does not have to be paid £520 in each month, but must have received some earnings in each of the three calendar months that have been paid and reported to HMRC via Real Time Information (RTI)
- Up-to-date RTI records are available for the period to the end of January 2021
- They are not serving a contractual or statutory notice period that started before 1 February 2021 for the employer making a claim.
