Who Can Go Back Onto Furlough?

The government have announced that the furlough scheme will be extended once more.

The new end date is March, and has been extended due to the new lockdown in England.

But what are the details of the scheme and who can be placed back on it?


Furlough Is Back!

The Job Retention Scheme (more commonly known as furlough) was introduced in late March 2020, with the aim of saving jobs through the pandemic.

Now it’s back! If an employee can’t do their job due to their workplace having less work, or being closed, then they will be eligible to be placed onto the scheme.

Under the Coronavirus Job Retention Scheme furloughed employees receive 80% of their pay, up to a maximum of £2,500 a month.

It’s estimated that 2 million workers were still on furlough in October, and that 10 million jobs have been claimed for over the past 8 months


What Are The Details For This Furlough Scheme?

Since August business owners have had to top up a furloughed workers wages by 20% with the government paying 60% of the wages.

This will now change, and revert back to the figures we saw during the first lockdown.

This means that the government will pay 80% of a furloughed workers wages and the employer will only have to cover pension and national insurance contributions.

For a worker to be eligible they must have been on the payroll from October 30th 2020. It will not matter if they have been furloughed before or not.

In more recent months workers have been able to work part time, and still be placed on furlough for the rest of their hours. This will continue in the new lockdown.

The government have announced that while the system is updating, employers will have to submit a claim and then be refunded afterwards. After this, the costs will be paid upfront.


What Other Support Is Available?

Businesses can also claim up to £3,000 per month through the Local Restrictions Support Grant if they are forced to close due to restrictions.

There is also £1,000 for every furloughed employee that a business keeps on until at least the end of January.

So, as you can see business owners will need to consider all of the different support options available to them.

In terms of hiring workers there is even more support available; for every 16-24 year old who was out-of-work a business can get £1,500 if they give them a six month work placement.

Businesses can also get £2,000 for every apprentice under 25 that they take on until the end of January (or £1,500 for over 25’s).

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