• Emily Gibson

Further 'Extended' Furlough Scheme (Again, yes that's four times)...

I think we can all agree that the Coronavirus Job Retention 'Furlough' Scheme (CJRS) has been a life line for many individuals and many businesses, so it's unsurprising that the government have now extended the scheme for the fourth time since it began back in March 2020!

Our most recent announcement in early March 2021 revealed the CJRS is now extended until the end of September 2021.

Whilst the rules of the current scheme will remain the same, until the end of June 2021, government contributions will reduce from 1st July onwards.

Please note that, from 1st December 2020, you may not claim under the CJRS for any employees currently serving in their notice period.

So, What Do We Know So Far?

Following the end of the current arrangements in April and, whilst the guidance may be subject to changes, the scheme rules will continue until the end of June and are as follows:

Current Scheme Rules

  • You may bring your furloughed employees back to work on a part time basis or furlough them full-time.

  • You will be able to agree to any working pattern with your employees.

  • You must pay your employees for all 'worked hours', and be responsible for paying the tax and NICs as per the normal contract of employment.

  • For 'hours not worked' by the employee, the government will pay 80% of wages up to a cap of £2,500. 

  • The grant must be paid by you to the employee in full.

  • You will be expected to continue to cover National Insurance and employer pension contributions.

  • As with the current CJRS, you are still able to choose to top up employee wages above the scheme grant at your own expense if you wish.

  • When claiming the CJRS grant for furloughed hours, you will need to report and claim for a minimum period of 7 consecutive calendar days.

  • You will need to report hours worked and the usual hours your employee would be expected to work in a claim period.

Extended Scheme Rules

  • The Government will continue to cover the cost of 80% of employees’ pay (up to the applicable cap) for non-worked hours until 30th June 2021., with employers having to cover only employer NI and pension contributions.

  • From July the Government will pay 70% of employees’ pay for furloughed hours and in August and September this will reduce down further to 60% of employees' furlough pay.

  • From July onwards, employers will be expected to make up the difference so that employees continue to receive 80% of their pay (subject to the applicable cap) for their furloughed hours.

Are You and Your Employees Eligible?

  • Neither you nor your employee needs to have previously used the Scheme.

  • Employees may be on any type of contract. 

  • To be eligible to claim for periods up to 30th April 2021, you must have established a UK PAYE scheme on or before 30th October 2020.

  • For claim periods from 1st May 2021, employers must have established a UK PAYE scheme on or before 2 March 2021.


Please note, with all coronavirus updates, the legislation is being rolled out in very short timescales, so we anticipate more guidance may follow.

Full details of the scheme and other grants available can be seen on the government website, but if this immediately affects your and your business, please call the HR patch Ltd today on 01252 299 110 or email info@thehrpatch.co.uk for support! 

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