New guidance on Coronavirus Job Retention Scheme published.
Businesses furloughing staff during the coronavirus outbreak will receive further financial support - with costs of employer national insurance and pension contributions being covered by the Government.
Under the scheme employers can claim a grant covering 80% of the wages for a furloughed employee, subject to a cap of £2,500 a month.
In a move that could save businesses an extra £300 a month for each employee under the scheme the Government will now cover the employer national insurance and minimum auto-enrolment pension scheme contributions employers pay on the wages they must pay their furloughed staff - on top of the wages covered under the scheme.
Chancellor of the Exchequer Rt Hon Rishi Sunak MP said:
"Since the start of the coronavirus outbreak I've made it clear that hard-working employers and employees should not have to suffer hardship unnecessarily. Our Coronavirus Job Retention Scheme supports workers and businesses up and down the UK - and today we're strengthening it because we will do whatever it takes to support jobs."
New guidance on the Coronavirus Job Retention Scheme published by the Government also confirmed that those made redundant after 28 February can be reemployed and placed on furlough. Those on furlough will also be permitted to volunteer without risking their pay - and will be able to join the 500,000 members of the public who have signed up to help the NHS during the coronavirus outbreak. The scheme is part of an unprecedented package of measures announced by the Chancellor to protect individuals and businesses.
Pano Christou, CEO, Pret A Manger said:
"At Pret, our number one priority has been to look after our Team Members and protect jobs. We had already made a commitment to keep jobs across Pret for as long as possible but thanks to the Government's support can also keep paying all of 8,000 UK employees despite the fact that our UK shops are not currently open. We're grateful to the Chancellor for this support through this crisis and in turn we've been doing whatever we can to help the National effort, supporting NHS works with discounted food and coffee as well as giving all our surplus foot to people in need. We stand ready to help further over the coming weeks and are actively looking at what more we can do."
James Watt, Co-Founder, BrewDog said:
"The generous support plans introduced by the Government are positive and have allowed us to better look after our people and business. This has allowed us to keep doing our best to ensure our business survives and we protect as many jobs as we can."
James Timpson, CEO, Timpson Group said:
"The support that the Government has given to business is vital to keep people employed and to ensure we can plan our futures with more certainty. The package of support given makes our future secure and our colleagues and suppliers can sleep well at night now."
Employer National Insurance contributions and contributions employers must make which help fund the NHS and benefits like the state pension.
27 March 2020