Government Extends Job Retention Scheme – Here are the Highlights

Tuesday 12 May 2020 - Thomas Adcock - Partner, Head of Tax

Today the Chancellor announced an extension to the Government’s Job Retention Scheme, as well as potential increased flexibility to encourage and help employers and employees to manage the return to workplaces.

The highlights are:

  • The scheme has been extended by 4 months – to the end of October 2020

  • Employers will continue to receive reimbursement for 80% of their employees’ monthly wages up to the maximum of £2,500 per employee but the Government will ask employers to share the cost of the scheme

  • It will continue to apply to all sectors and regions of the UK

  • The scheme is expected to be modified from August to allow greater flexibility, allowing employers using the scheme to bring furloughed employees back part-time

  • Of course, we will need to wait for the detail to understand how this works in practice. Further updates are expected by the end of May and we will of course update you once we know more.

What next?

If you have any questions about your business’ eligibility for the Job Retention Scheme or how it works, please contact us.