Furlough scheme set to move into final month

29 Sep 2020

The government's Coronavirus Job Retention Scheme (CJRS) moves into its final phase this October before a new scheme comes into force.

The CJRS has supported more than nine million people since it was launched by Chancellor Rishi Sunak in March in a bid to protect jobs and businesses during the coronavirus (COVID-19) pandemic.

However, the CJRS will come to an end on 31 October and is set to cost the Treasury over £34 billion.

Following fears of mass redundancies and loss of businesses, the Chancellor recently unveiled a new Job Support Scheme in his Winter Economy Plan. Furloughed employees will continue to get 80% of their salary until the CJRS finishes at the end of October.

During October, the government will pay 60% of wages up to a cap of £1,875 for the hours an employee is on furlough.

Employers will pay national insurance and employer pension contributions and will top up employees' wages to ensure they receive 80% of their pay, up to a cap of £2,500 for the time they are furloughed.

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