Coronavirus Job Retention Scheme (CJRS) Extension until 30 September 2021

The government has recently announced that the Coronavirus Job Retention Scheme (CJRS) will be extended until 30 September 2021. Similar to the graduating claim limits last year, employers will be able to claim the below percentages for their employees who they have put on furlough or flexible furlough.

• Between now and 30 June, the government will continue to pay 80% of wages for hours not worked when furloughed, up to £2,500 a month.
• From 1 July, the government will pay 70% of usual wages for hours not worked up to a cap of £2,187.50, with employers covering the remaining 10%.
• From 1 August, the government will pay 60% of usual wages for hours not worked up to £1,875, with employers covering the remaining 20%.

Employers must pay the associated employer NICs and pension contributions on all furlough pay and can choose to top up wages above the 80% but are not required to do so. The employee does not need to have been put on furlough before in order to utilise the extended scheme, but for periods from 1 May 2021 onwards, an employee must have been on payroll on 2 March 2021.

The aim of the extension is of course to save jobs for longer and avoid redundancies, while the vaccination programme continues to progress. Employers are advised to refer to the latest guidance on the scheme (via Gov.UK) to ensure that they are eligible to access grants and use the furlough scheme correctly. HMRC are very aware of fraud and are increasing measures, including implementing a new dedicated unit specialising in Covid-19 fraud where schemes such as the CJRS are being exploited.

The government also confirmed an extension of the Self Employment Income Support Scheme to September 2021.

If you would like further information please contact our HR Consultant Juliet Mellues.