This scheme will provide a grant to all UK employers across all sectors (private, public, charitable and non-profit) to keep their workers on, rather than making them redundant during the coronavirus outbreak.
HM Revenue and Customs (HMRC)
This programme will be provided by HM Revenue & Customs (HMRC).
Objectives of Fund
Under the Coronavirus Job Retention Scheme, all UK employers will be able to access support to continue paying part of their employees’ salary for those that would otherwise have been laid off during the coronavirus crisis.
To access the scheme, applicants must have designated affected employees as ‘furloughed workers,’ and notified these employees of this change. They must also submit information to HMRC about the employees that have been furloughed and their earnings.
17 April 2020:
Chancellor Extends Coronavirus Job Retention Scheme to End of June
In order to allow firms across UK to continue to protect millions of jobs, the Government’s furlough scheme has been extended.
The Government’s furlough scheme, which aims to keep millions of people in employment, will be extended for a further month, the Chancellor has confirmed.
Following the announcement of continuing social distancing measures, Chancellor of the Exchequer Rishi Sunak said the Coronavirus Job Retention Scheme (CJRS) would now be open until the end of June in order to provide businesses with the certainty they need.
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.
Future decisions on the scheme 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.
Rishi Sunak, 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.'
27 March 2020:
Further details of Coronavirus Job Retention Scheme announced
Businesses furloughing staff during the coronavirus (COVID-19) outbreak will receive further financial support – with the costs of employer national insurance and pension contributions being covered by the Government.
Under the scheme, employers can claim a grant covering 80% of the wages for a furloughed employee, subject to a cap of £2,500 a month.
In a move that could save businesses an extra £300 a month for each employee under the scheme, the government will now cover the employer national insurance and minimum auto-enrolment pension scheme contributions employers pay on the wages they must pay their furloughed staff – on top of the wages covered under the scheme.
Employers will be able to contact HMRC for a grant to cover most of the wages of their workforce who remain on payroll but are temporarily not working during the coronavirus outbreak.
Salaries will be paid at 80% of their current level up to a maximum of £2,500 per worker each month, and minimum automatic enrolment employer pension contributions on that subsidised wage.
The funding will be backdated to 1 March 2020, if applicable, and will be initially open for four months, to be extended if necessary.
In a move that could save businesses an extra £300 a month for each employee under the scheme, the Government will also cover the employer national insurance and minimum auto-enrolment pension scheme contributions employers pay on the wages they must pay their furloughed staff – on top of the wages covered under the scheme.
Who Can Apply
All UK businesses and employers with a PAYE scheme that was created and started on or before 19 March 2020, small or large, will be eligible for the scheme. This includes employers across the private and public sector and charities and non-profit organisations.
How To Apply
Applications are now open. Details of what applicants need to make a claim are available at https://www.gov.uk/guidance/claim-for-wages-through-the-coronavirus-job-retention-scheme
Applicants will be able to submit information to HMRC about the employees that have been furloughed and their earnings.
Useful documents & links
Addresses and contacts
For further information on how to obtain this grant locally, please contact the following:
HM Revenue and Customs (HMRC)
Tel: 0800 024 1222