The government has announced the Coronavirus Job Retention Scheme – also known as the furlough scheme – will be extended until March 2021. Due to the extension, the previously announced Job Retention Bonus will no longer be paid in February 2021.
Here are the key points from the announcement. There will be additional guidance published in the coming weeks so please keep an eye on our news & insights page for updates.
– 30 November 2020 – final date to submit for any claims before 31 October 2021
– 1 December 2020 – change in the approach for redundancy (more details will be available in late November)
– January 2021 – review of the scheme
– 31 March 2021 – end of the furlough scheme
Note – employers should remember to change the terms of employment contracts by agreement before furlough starts as this will be needed for new furlough arrangements. Due to the rush to have everything in place for CJRS V3 in early November, it was possible to use retrospective agreements. However, please note that only those put in place up to and including 13 November 2020 can be relied on for the purposes of a CJRS V3 claim.
The government also announced additional support for businesses that are required to close due to Covid-19 restrictions. They will be eligible for the following:
– properties with a rateable value of £15k or under – grants to be £1,334 per month or £667 per two weeks;
– properties with a rateable value of between £15k-£51k – grants to be £2,000 per month or £1,000 per two weeks;
– properties with a rateable value of £51k or over – grants to be £3,000 per month or £1,500 per two weeks.
If you need any help understanding what these changes could mean for your business, please get in touch.
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The COVID-19 crisis is rapidly evolving and the Government's response and the details of support on offer are continuously changing. We'll be updating our posts regularly to ensure our analysis and advice remains as accurate and useful as possible. To receive the very latest information as we release it follow us on LinkedIn. If you have any questions in the meantime, please get in touch.