What you need to know about the extended furlough scheme

Over the Halloween weekend, the government announced that England would be going into a month long national lockdown and as such the Job Retention Scheme that was due to come to an end on the 1st November would be extended for as long as the lockdown lasted. However, the scheme will revert to the way it operated earlier in the year rather than the way it has been operating for the past couple of months.

So what are the main points you need to know?

  • Employees will receive 80% of their normal pay for hours not worked, up to a maximum of £2,500 per month
  • Unlike the last few months of the previous scheme, the government will pay the full 80% of a furloughed employee’s wages while an employer who uses the scheme will only have to pay national insurance and employer pension contributions
  • Flexible furloughing as well as full time furloughing will be available with the government contributing 80% of the wages for hours not worked
  • Furlough periods (whether flexible or full) must last for a minimum of 7 days.
  • Employees must be on an employer’s payroll by 30th October 2020 to be eligible for the scheme

FAQs

Am I eligible for the furlough scheme on my contract type?

Employees can be on any type of contract.

On flexible furlough, are there any requirements around when and where I can work?

Employers will be able to agree any working arrangements with employees provided the furlough period lasts a minimum of 7 days.

When will businesses receive the money from the furlough scheme?

As within the previous scheme, businesses will be paid upfront to cover wage costs.

Which employers are eligible?

All employers with a UK bank account and UK PAYE schemes can claim the grant. The government expects that publicly funded organisations will not use the scheme, however partially publicly funded organisations may be eligible where their private revenues have been disrupted.

Do I have to have used the furlough scheme before to be eligible now?

Neither the employer nor the employee needs to have previously used the Job Retention Scheme.

If you have any questions about the furlough scheme or how to get your business through the next lockdown period, get in touch with Bradley HR.