Changes to the Coronavirus Job Retention Scheme (CJRS)
The CJRS, otherwise known as the Furlough Scheme, was due to end on 30 April 2021. However, a further extension has been announced in the 2021 Spring Budget, with a new end date of 30 September 2021.
For periods ending on or before 30 April 2021, employees must have been employed on 20 October 2020. However, for periods starting on or after 1 May 2021 employers can claim for employees who were employed on 2 March 2021 provided a PAYE Real Time Information (RTI) submission notifying a payment of earnings for them has been made at any time between 20 March 2020 and 2 March 2021.
The amount of the Grant stays the same up to 30 June 2021, namely 80% of employees normal wages for hours not worked, up to a cap of £2,500 per month, with employers paying Employers NIC and pension contributions. However, the amount of the grant will fall to 70% for July and 60% for August and September.
Employers must continue to pay at least 80% of normal wages to qualify for the grant which means that they will have to fund the shortfall of 10% in July and 20% in August and September, capped at £312.50 and £625 respectively.