John Baron MP highlights forthcoming changes to furlough scheme

MP encourages employers to stay alert to changes

The Coronavirus Jobs Retention Scheme allows employers to furlough their employees whilst maintaining 80% of their usual pay up to a limit of £2,500 per month. This is one of the most generous schemes of its type in the world, but it is changing over the coming months. Please see ‘notes to editors’ for further details.

John said,

“The Coronavirus Jobs Retention Scheme has helped to protect many millions of jobs across the country, and over 11,000 in Basildon & Billericay. However, as we gradually emerge from the lockdown and begin to restart the economy, the scheme will change in phases over the coming months until it finally closes at the end of October. I would encourage all employers using the scheme to be alert and follow these changes – full guidance is available online: https://www.gov.uk/government/publications/changes-to-the-coronavirus-job-retention-scheme/changes-to-the-coronavirus-job-retention-scheme.”

Notes to Editors:

• In June and July, the Government will pay 80% of wages up to a cap of £2,500, as well as employer National Insurance Contributions (ER NICS) and pension contributions for the hours an employee is on furlough.

• From 1st July, employers can bring furloughed employees back to work for any amount of time and any shift pattern, while still being able to claim under the scheme for the hours not worked. Employers will have to pay employees for the hours they work.

• In August, the Government will pay 80% of wages, up to £2,500. Employers will pay ER NICS and pension contributions for the hours an employee is on furlough.

• In September, the Government will pay 70% of wages, up to £2,187.50. Employers will pay ER NICS and pension contributions as well as topping up employees’ pay to ensure they receive 80% of their wages for the hours they are furloughed.

• In October, the Government will pay 60% of wages, up to £1,875. Employers will pay ER NICS and pension contributions and top up employees’ pay to ensure they receive 80% of their wages for the hours they are furloughed.

• The scheme will end on 31st October 2020.

• Further details are available online at: https://www.gov.uk/government/publications/changes-to-the-coronavirus-job-retention-scheme/changes-to-the-coronavirus-job-retention-scheme.

• If people are having difficulty obtaining essential supplies, they can register with Essex Coronavirus Action, which is a collaboration between Essex County Council, the Essex Public Health Team and local groups. Their number is 0300 303 9988, open from 8.00am – 8.00pm, seven days a week.

• They can also register with the Community Hub, which is run by Basildon Council and provides support to the elderly and vulnerable at this time. The number is 01268 533 333 (option 1), or e-mail coronavirusresidents@basildon.gov.uk.