From 1st July, the scheme will be made more flexible to enable employers to bring previously furloughed employees back part time and still receive a grant for the time that they are not working, and
From 1st August, employers will have to start contributing to the wage costs of paying their furloughed staff and this employer contribution will gradually increase in September and October, and
The scheme will close to new entrants on 30th June.
What is the Job Retention Scheme?
This scheme is designed to support employers whose operations have been seriously affected by the outbreak and will be launched on the 20th April. HMRC will be contacting employers to advise them how to make the relevant claims. Ourselves, together with our colleagues at Office Support, will be on hand to help you in any ways that we can.
Employers can claim for 80% of furloughed employees’ usual monthly wage costs up to £2,500 a month plus the associated Employer NI and minimum employer pension contributions on that wage. Initially this will last for 3 months.
A furloughed employee is one who is on a leave of absence.
The scheme is open to all employers that had a payroll system in operation on 28th February 2020.
- 3 month mortgage holidays
- No evictions for the non payment of rent for 3 months
- Easier use of the Universal Credit system
These measures are designed to cover the majority of cases and so there will be serious gaps left which result in some people being unable to claim what they feel that they are entitled to. Many professional bodies are flagging these gaps up to Ministers and are working with their departments to find, develop and implement solutions.
Additional procedures should be issued to deal with the gaps mentioned above.