Government announces plan to wind down the Coronavirus Job Retention Scheme

On Friday evening the Chancellor announced further details on how the Coronavirus Job Retention Scheme will wind-down before closing at the end of October. The key points are as follows.


  • The Scheme will close to new entrants on 30 June 2020, and claims can only be made for employees who have been furloughed for three weeks by this date.


  • This means that employees must be furloughed on or before 10 June 2020 to qualify for support under the Scheme.


  • Furloughed employees will be able to work part-time from 1 July. Further guidance on the arrangements for funding will be published on 12 June, but the current advice states that:


“Individual firms will decide the hours and shift patterns their employees will work on their return, so that they can decide on the best approach for them – and will be responsible for paying their wages while in work”.


  • Employee’s national insurance contributions and pension contributions must be paid from 1 August and cannot be reclaimed under the Scheme.


  • While employees will continue to receive 80% of their salary while furloughed, the proportion which is funded by the Government will decrease. From 1 September 2020, employers will be able to reclaim 70% of wage costs under the Scheme, up to a maximum of £2,190 per employee each month. This will drop to 60%, up to a maximum of £1,875 per employee each month, from 1 October.


  • The Scheme will still close as previously intended on 31 October 2020.


If you are affected by any of the above, please do not hesitate to contact Jack Balmer or your usual Tughans contact for further advice and guidance.

While great care has been taken in the preparation of the content of this article, it does not purport to be a comprehensive statement of the relevant law and full professional advice should be taken before any action is taken in reliance on any item covered.