On 12 May 2020, the Chancellor confirmed that this scheme will be extended until 31 October 2020. On the 29th May he confirmed the details of how the scheme would be changed to a flexible arrangement from 1 July 2020.
Until 1 September 2020, claims for time not worked will continue to be based on 80% of furloughed person’s salary up to the £2,500 maximum. For September this reduces to 70% capped at £2,187.50 and a further reduction in October to 60% capped at £1,875.
From 1 July 2020, employers can bring back furloughed staff part-time. Employers will be responsible for paying for this part-time work.
From 1 August 2020, employers will be required to pay for any employers’ NIC and pension costs. From 1 September employers will be asked to contribute 10% of the CJRS wage costs for time not worked and from 1 October this contribution will increase to 20%.
The scheme will now close 31 October 2020.