Following the Prime Minister’s announcement that England will enter a national lockdown from 5 November 2020 to 2 December 2020, the Coronavirus Job Retention Scheme, which was due to come to an end on 31 October 2020, has been extended for a month and will continue to be available during November. As a result, the Job Support Scheme, which was due to replace the Coronavirus Job Retention Scheme from 1 November 2020, has been put on hold.
Under the Coronavirus Job Retention Scheme, as extended, furloughed employees will receive 80% of their pay, capped at £2,500 a month. Employees who are flexibly furloughed will receive 80% of their pay for their furloughed hours subject to the cap.
The grant will be set at 80% of the employee’s pay for their furloughed hours, subject to the cap of £2,500 for the month. The full amount of the grant must be paid over the to employee. Unlike September and October, the employer will not be required to top up the grant; however, employers will have to pay the employer’s National Insurance on the grant, and also any employer pension contributions due under auto-enrolment.
To be eligible for a grant under the scheme, the employee must have been on the employer’s payroll at 23.59 on 30 October 2020 and an RTI submission made to HMRC in respect of the employee. Employees who were on the payroll at 23 September 2020 and in respect of whom an RTI submission was made, but who stopped working for the employer after this date or who were made redundant, can also benefit from the scheme if their employer re-employs them.