The CJRS had previously been extended to run until 30 April 2021 and the Chancellor confirmed that it will now be extended for a further five months until 30 September 2021.
During May and June 2021, employees will continue to receive 80% of their usual wages or salary for hours not worked (capped at £2,500), with employers having to meet the cost of pension contributions and employer’s National Insurance Contributions (NIC). From 1 July 2021 onwards, employees will continue to receive 80% of their usual wages or salary but employers will be required to make a contribution towards the cost of the unworked hours. Employers will have to make a contribution of 10% in July and 20% in August and September 2021.
Both employers who continue to make use of the CJRS and their employees who have been put on ‘furlough’ are affected by this announcement.
The extension to the CJRS applies from 1 May to 30 September 2021.
It is clear that many businesses will continue to be affected by COVID-19 for some time to come and this extension provides valuable support for those businesses and their employees.