Government announces extension of the Coronavirus Job Retention Scheme until December 2020

As a result, new Job Support Scheme, that had been due to be introduced tomorrow, has been postponed until the extended furlough scheme ends

The government has announced the extension of the Coronavirus Job Retention Scheme (CJRS).

In a speech this evening, in which he announced new restrictions across England to help combat coronavirus, the Prime Minister said - 

'... we are going to extend the furlough system through November. The furlough scheme was a success in the spring. It supported people and businesses in a critical time. We will not end it. We will extend it until December.'

While the CJRS had been due to end today - being replaced by the new Job Support Scheme from 1 November 2020 - the government confirms that -

'... the Coronavirus Job Retention Scheme - also known as the Furlough scheme - will remain open until December, with employees receiving 80 per cent of their current salary for hours not worked, up to a maximum of £2,500. Under the extended scheme, the cost for employers of retaining workers will be reduced compared to the current scheme, which ends today ...

The Job Support Scheme, which was scheduled to come in on Sunday 1st November, has been postponed until the furlough scheme ends.'

Ahead of additional guidance that will 'be set out shortly', the government says that - 

• the extended CJRS will operate as the previous scheme did, with businesses being paid upfront to cover wages costs;
• as under the current scheme, flexible furloughing will be allowed in addition to full-time furloughing;
• to be eligible, employees must have been on an employer’s PAYE payroll by 23:59 on 30 October 2020; and
• there will be no gap in eligibility for support between the previously announced end-date of the CJRS and the extended scheme.

For more information, see Furlough scheme extended and further economic support announced from gov.uk