On Thursday 5 November, the Chancellor of the Exchequer Rishi Sunak announced that the Coronavirus Job Retention Scheme (CJRS) would be further extended and will remain open to employers until the end of March 2021.

Originally extended until December 2020, the new extension will apply to the whole of the United Kingdom, despite restrictions being different in each nation. The extension will help provide security to individuals and businesses that are impacted by the disruption caused by COVID-19 this winter.

As this is an extension of the existing scheme, the scheme rules will remain the same except where otherwise stated. For claim periods running to January 2021, employees will receive 80% of their usual salary for hours not worked, up to a maximum of £2,500 per month. The £2,500 cap is proportional to the hours not worked.

The Chancellor also announced that anyone made redundant after 23 September can be rehired and put back on furlough. Businesses that had not previously furloughed employees can use the scheme, provided they meet the eligibility criteria.

The government plans to review this new extension in January 2021 and decide whether economic circumstances are recovering enough to ask employers to contribute more. The Job Support Scheme which was set to run from 1 November 2020, has been postponed until the extended CJRS ends in March.

For more information on the Job Support Scheme, please read the policy paper that can be found here.

For more information and guidance on coronavirus support measures for businesses, employers and employees, visit the activpayroll latest news page.

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