Toni Robinson, Managing Director of NucleusHR provides an urgent update for employers on the latest announcement from the government regarding the extension of the Job Retention Scheme.
In a boost to millions of jobs and businesses, on Tuesday 12th May, the Chancellor announced an extension to the furlough scheme until the end of October 2020.
Rishi Sunak said the furlough scheme would be extended for a further four months with no changes to the 80% that employees are eligible to receive.
The Scheme will remain in its current form until the end of July 2020 but as the Country prepares to recover from the COVID-19 pandemic, the Government are making provisions for the scheme to be more flexible from August 2020. From the start of August, furloughed workers will be able to return to work part time with employers being asked to pay a percentage towards the salaries of their furloughed staff.
The employer payments will substitute the contribution the government is currently making, ensuring that staff continue to receive the 80% of their salary, up to £2,500 per month.
Further details as to how the scheme will specifically work from August will be shared by the government in the next few days.
Today the government have published figures that confirms that 935,000 employers have utilised the scheme, with over 7.5 million jobs being furloughed with a current claim value of over £10 billion.
With cost savings dominating client conversations with NucleusHR currently, there is no doubt that this scheme has saved millions of jobs across the country, and by extending the scheme and introducing flexibility from August may well safeguard more.
If you wish to take further advice on how best to handle COVID-19 in your business, please contact NucleusHR on 07960 418494 or toni@nucleushr.com
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