Jun 04
helping care workers services

Changes to furloughed staff from 10th June 2020

So far, we have seen the Furlough Scheme (CJRS) and the Bounce Back Loans (BBL)  being fantastic lifelines for many businesses with a huge take up on both.
 
You will no doubt already be aware that the Furlough Scheme has been extended, but what you may not be aware of is that this extension comes with some changes. We want to draw your attention to some key points to ensure you do not get caught out and to give you the opportunity to plan accordingly.
 

1. The furlough scheme will be closing to additional new staff entrants from 10th June 2020 and not 30th June like the press may be reporting.

This is because from 30th June all entrants need to have already been furloughed for a minimum of 3 weeks at some point prior to 30th June to qualify for the scheme going forward.

This point is very important as you essentially may need to make some longer term furlough plans now ( relating up to October 2020 ), because after the 10th  June it  may be then closed off to you.

 
2. From 1st July 2020, you can start to bring staff back on a part time basis. If you choose not to do that, the government will still pay 80% of their salary.

  • You have to pay the employees for the hours they work, however many hours that may be. The government will pay 80% of the unworked hours.
  • Further guidance is due on this from 12th June 2020.

 
3. From 1st August 2020 up until 31st October 2020, employees are still able to receive 80% of their salary (minimum) but the amount that will be reimbursed from the government will start to reduce.

  • From August you will have to pay the pension & NI in full, but reclaim 80% of the salary (up to £2500 pcm)
  • From September you will have to pay the pension & NI in full, along with 10% of the salary. You would then reclaim 70% of the salary (up to £2190 pcm)
  • From October you will have to pay the pension & NI in full, along with 20% of the salary. You would then reclaim 60% of the salary (up to £1875 pcm)

Please do get in touch on 0114 266 4432 or info@smhca.co.uk if you need help with anything, and we will be happy to assist you.