Further details of Coronavirus Job Retention Scheme announced
New guidance on Coronavirus Job Retention Scheme published.
- government to cover employer National Insurance and pension contributions of furloughed workers – on top of 80% of salary
- those furloughed can volunteer for the NHS without risking their pay
Businesses furloughing staff during the coronavirus outbreak will receive further financial support – with the costs of employer national insurance and pension contributions being covered by the government.
Under the scheme, employers can claim a grant covering 80% of the wages for a furloughed employee, subject to a cap of £2,500 a month.
In a move that could save businesses an extra £300 a month for each employee under the scheme,the government will now cover the employer national insurance and minimum auto-enrollment pension scheme contributions employers pay on the wages they must pay their furloughed staff – on top of the wages covered under the scheme.
Chancellor of the Exchequer Rt Hon Rishi Sunak MP said:
Since the start of the coronavirus outbreak, I’ve made it clear that hard-working employers and employees should not have to suffer hardship unnecessarily.
Our Coronavirus Job Retention Scheme supports workers and businesses up and down the UK – and today we’re strengthening it because we will do whatever it takes to support jobs.
New guidance on the Coronavirus Job Retention Scheme published by the government also confirmed that those made redundant after 28 February can be reemployed and placed on furlough.
Those on furlough will also be permitted to volunteer without risking their pay - and will be able to join the 500,000 members of the public who have signed up to help the NHS during the coronavirus outbreak.
The scheme is part of an unprecedented package of measures announced by the Chancellor to protect individuals and businesses.
Pano Christou, CEO, Pret A Manger said:
At Pret, our number one priority has been to look after our Team Members and protect jobs. We had already made a commitment to keep jobs across Pret for as long as possible, but thanks to the Government’s support can also keep paying all of 8,000 UK employees, despite the fact that our UK shops are not currently open.
We’re grateful to the Chancellor for his support through this crisis – and in turn, we’ve been doing whatever we can to help the national effort, supporting NHS workers with discounted food and coffee, as well as giving all our surplus food to people in need. We stand ready to help further over the coming weeks and are actively looking at what more we can do.
James Watt, Co-Founder, BrewDog said:
The generous support plans introduced by the government are positive and have allowed us to better look after our people and business.
This has allowed us to keep doing our best to ensure our business survives and we protect as many jobs as we can.
James Timpson, CEO, Timpson Group said:
The support that the government has given to business is vital to keep people employed, and to ensure we can plan our futures with more certainty.
The package of support given makes our future secure and our colleagues and suppliers can sleep well at night now.
Employer National Insurance contributions are contributions employers must make which help fund the NHS and benefits like the state pension.
- minimum automatic enrolment employer contributions are the minimum contributions that employers must make into their employees’ pensions
- the joint contributions on monthly wages of an individual employee earning £2,500 equate to more than £300
- guidance for employers on the Coronavirus Job Retention Scheme can be found here
- guidance for employees can be found here
Latest News from
Coronavirus sick pay scheme opens for applications27/05/2020 11:10:00
Small businesses and employers across the UK who have paid statutory sick pay to staff taking coronavirus-related are now able to claim back the money as of yesterday.
Up to £15 million to support the Citizens Advice service during COVID-19 pandemic26/05/2020 14:22:00
Citizens Advice and Citizens Advice Scotland to receive funding boost of up to £15 million to help them deal with increased demand during the COVID-19 pandemic.
Help with mortgages to continue for homeowners affected by Coronavirus22/05/2020 12:10:00
Homeowners struggling to pay their mortgage due to Coronavirus will be able to extend their mortgage payment holiday for a further three months, or start making reduced payments, in proposals published today.
Government to give VAT from donated PPE to healthcare charities22/05/2020 11:10:00
VAT collected on donated personal protective equipment will be given to charities supporting the NHS and care workers, the government announced yesterday (21 May 2020).
Government unlocks £150 million from dormant accounts for coronavirus response21/05/2020 15:20:00
Culture Secretary accelerates release of funding in further boost for charities and social enterprises across the country.
Future Fund launches today20/05/2020 17:08:00
The government’s £500 million Future Fund opens for applications today (Wednesday 20 May) with innovative and high-growth British businesses able to secure investment to help them through the Coronavirus outbreak.
Coronavirus Statutory Sick Pay Rebate Scheme set to launch20/05/2020 11:14:00
Employers will be able to make claims through the Coronavirus Statutory Sick Pay Rebate Scheme from 26 May.
UK Global Tariff backs UK businesses and consumers20/05/2020 08:12:00
The Government has announced the UK’s new MFN tariff regime, the UK Global Tariff (UKGT).