Extension of furlough scheme and postponement of Job Support Scheme

In a surprising development on 31 October, the Prime Minister announced a month long lockdown for England starting on 5 November. He also announced that the furlough scheme would not end on 31 October as expected but will remain open for a month until December.

The introduction of the Job Support Scheme (JSS), which was expected to commence on 1 November, is postponed until the extended furlough scheme ends.

We are waiting for additional Government guidance on the extended furlough scheme.

Significantly, we do know that the Government will pay furloughed employees 80% of their wages for hours not worked up to a cap of £2,500. The extended furlough scheme is more generous for employers as the Government contribution to furloughed employees’ wages in October was 60%. Neither the employer nor the employee needs to have previously used the furlough scheme and employees must be on the payroll by 23.59 on 30 October 2020 if an employer intends to claim for them under the extended furlough scheme.

We will provided further details when the Government guidance is available. In the meantime, here is a link the Government’s press release about the furlough extension.