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Update on the Job Retention Scheme 2.0 and phase out

In the nest few months we see the balance to rebuild the economy and stay safe from the second wave. A huge amounts of ifs and buts and maybes to plan your business on.

On Friday the Chancellor updated the Coronavirus Job Retention Scheme (CJRS) to merge with the reopening of businesses under lockdown... the idea is to slowly phase in employees back to work - here are the highlights in brief. 

Version 2.0 of the Coronavirus Job Retention Scheme (CJRS)

  • From the 1st July the scheme will allow part-time working

  • Employers will be able to put staff on part-time furlough, claiming the CJRS grant for a portion of their salary.

  • Any employers on part time furlough basis is required to have been on furlough for a three-week minimum under the current rules. Any new period of furlough leave must have started by 10 June 2020 to be complete when the current scheme ends on 30 June and so ensure the employee remains eligible from 1 July.

  • From 1 August the CJRS grant will no longer cover the cost of employers’ National Insurance nor pension contributions with employers expected to cover the costs.

What about grant payments to employers?

  1. August - the CJRS will continue to pay 80% of wages

  2. September - the CJRS will pay 70% of wages while employers will take on the other 10%

  3. October - the CJRS will pay 60% of wages while employers will take on the other 20%

If you have any questions about this we will be happy to answer as best we can, or refer you to an HR specialist. 

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