• Noel Aloko

COVID-19 Update: The Coronavirus Job Retention Scheme to finish at the end of October.

Updated: Sep 24

COVID-19 Update: The Coronavirus Job Retention Scheme to finish at the end of October

The Chancellor, Rishi Sunak set out that the after eight months scheme will close at the end of October, 2020.  However, employers will have to start sharing the cost of the scheme from August, 2020.

  • Employers must bear the cost of the associated National Insurance and pension contributions from August 2020.

  • From September 2020, employers must bear the cost of 10% of the furlough pay (that is, the government will cut its grants to 70% of wages up to a cap of £2,190).

  • While in October, 2020 employers bearing the cost of 20% (that is, the government grant will be cut to 60% of wages up to a cap of £1,875).

Workers will also be allowed to return to work part-time from July, 2020 but with companies paying 100% of wages.

  • From 1st July, 2020 businesses will be allowed to bring furloughed employees back part-time, a month earlier than previously announced. The move is aimed to help support people back to work, the government said.

  • It will be down to individual firms to decide what part-time means. They will be able to set the hours and shift patterns staff will work when they return, but companies will have to pay wages while they are in work.

Asked if he would "switch the furlough scheme back on" in the case of a second peak in cases and the reintroduction of lockdown measures, the chancellor said the scheme "as it stands in a national way, in the way that it is designed" will end in October.

Chancellor Rishi Sunak says the next phase is about getting people back to work.