Coronavirus | Furlough Agreements & Claims

Furlough and the Coronavirus Job Retention Scheme

If your business operations have been reduced or even closed due to COVID-19, you might want to keep employees on the payroll so that they're ready to return to work when the business is able to start trading again.  

This is known as placing your workers ‘on furlough’.

If you furlough employees then you can apply for payroll support under the Coronavirus Job Retention Scheme (CJRS) in which the government will pay up to 80% of your furloughed employees' usual monthly wage costs, up to £2,500 a month, plus the associated Employer National Insurance contributions and pension contributions (up to the level of the minimum automatic enrolment employer pension contribution).

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UPDATED: CHANGES TO THE CURRENT CJRS SCHEME

Extended

The scheme was introduced on a temporary basis on 1 March 2020, however on the 12th May the Chancellor announced that it would be extended until the end of October 2020. It is planned that from August 1st the scheme will be changed to introduce 'new flexibilities' that will enable staff to return to work in a phased and controlled manner, most likely on a part-time basis. 

On May 29th the Chancellor announced the following timetable of changes to the scheme:



June and July: 

The government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance (ER NICS) and pension contributions. Employers are not required to pay anything. 

From 1 July, employers will be able to agree any working arrangements with previously furloughed employees.

August: 

The government will pay 80% of wages up to a cap of £2,500. Employers will pay ER NICs and pension contributions – for the average claim, this represents 5% of the gross employment costs the employer would have incurred had the employee not been furloughed.

September: 

The government will pay 70% of wages up to a cap of £2,187.50. Employers will pay ER NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500. For the average claim, this represents 14% of the gross employment costs the employer would have incurred had the employee not been furloughed.

October: 

The government will pay 60% of wages up to a cap of £1,875. Employers will pay ER NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500. For the average claim, this represents 23% of the gross employment costs the employer would have incurred had the employee not been furloughed.

Updated May 29th

Claims

The online service you’ll use to claim is now available.

Before you visit the portal to make your claim, we would strongly advise you to ensure that you have everything ready to hand so that the Government Gateway does not time you out.

Download the Step by Step Guide before you begin and it will save you a lot of time.


What you’ll need to make a claim

You can view our page on getting prepared for your claim by clicking the link below. The link will open in a new window so that you can keep this page open to refer back to.