Following the Prime Minister’s announcement that England of a month-long lockdown starting on Thursday 5 November and lasting until Wednesday 2 December, it was confirmed that the Coronavirus Job Retention Scheme will be extended to cover the period.

Employees who are unable to work will receive 80% of their usual pay, up to a monthly cap of £2,500.  Employers will retain the flexibility to bring furloughed employees back to work on a part time basis or to furlough them full-time.

To be eligible for the extended CJRS, employees must have been on the employers payroll by 30 October 2020, and the scheme is open to employees who have not be claimed for before.

There will be no contribution required from employers for the 80% of pay the employee receives, but employers will have to cover National Insurance and employer pension contributions (5% of total employment costs on average).

The Job Support Scheme, which was scheduled to begin today, Sunday 1 November, will be postponed until the extended furlough scheme ends.

There may be implications for employers based in the devolved nations. Currently any further details about this have not been made available, but will be updated when further guidance is released.