MY CIPP
The CIPP's policy and research teamprovide an update of developments and consultation exercises Policy team update On your behalf
T he CIPP’s policy and research team endeavour to respond to various consultations, using as many thinktank roundtable meetings as possible, in order to help shape the future content of government policies which have implications for the payroll profession. We are currently living in unprecedented times, and although we are trying to maintain a sense of normality and adopt a business-as- usual approach wherever possible, it is unavoidable that the coronavirus outbreak has changed the way in which we operate. Accordingly, the CIPP is investigating ways in which it can offer ‘virtual’ thinktank roundtables and will continue to respond to consultations of interest for the duration of this period of disruption. This will serve to ensure that we can still act as the voice of payroll on behalf of our members and the wider profession and continue to prompt change that will improve government policy delivery. SSP and Coronavirus Job Retention Scheme As you might expect, the Advisory team at the CIPP have been inundated with calls, emails and webchat relating to the temporary changes to statutory sick pay (SSP) and the Coronavirus Job Retention Scheme, announced by the Chancellor, Rishi Sunak. The news and guidance in relation to measures that aim to help businesses and workers through the COVID-19 outbreak is constantly changing, in order to keep up with the speed at which the virus is spreading, and the impact it is having on individuals in both an economic and a
...looking into options to host thinktanks in virtual formats until we are advised that it is safe to host them face-to-face...
financial distress. Working at pace to develop the systems to support and deliver the reimbursement process, HMRC announced in early April that it was planning to launch the mechanism from 20 April. The CIPP’s policy team will continue to provide regular updates as soon as we have them, via News Online , and a range of social media platforms to ensure that our members are kept informed of the changes as they are announced. The CIPP hopes that the effects of the coronavirus are as minimal as possible, and that normal service will resume relatively soon. The Chartered Institute will also adhere to government advice to ensure that its employees and members are protected and kept safe. We will be looking into options to host thinktanks in virtual formats until we are advised that it is safe to host them face-to-face again. Minimum/living wage rates The Low Pay Commission (LPC) has launched its annual review in response to being tasked by government with recommending rates of the national minimum wage (NMW) and monitoring the progression of the national living wage (NLW) rate to achieve its target of reaching two-thirds of median earnings by 2024. You will be aware that, in addition to this, the reach of the NLW is being expanded, with the intention that it will apply to those aged 23 and over from 2021, and to anyone aged 21 plus from 2024. The ambition is that the other NMW rates will be increased as much as possible without having adverse effects on employment.
social capacity. At the time of writing, what we
definitively know is that SSP is payable from day one, as opposed to day four, of absence for anybody self-isolating due to being symptomatic of, or diagnosed with, coronavirus. The government will refund up to two weeks’ worth of SSP per eligible employee to companies that employed less than 250 staff as of 28 February 2020. The mechanism for this reimbursement has not yet been established, and the repeated official advice is that this it will be worked on over the coming months. The Coronavirus Job Retention Scheme has been established to provide financial support to workers who otherwise would have been made redundant or laid-off. The government guidance confirms that any impacted employees will need to be reassessed as ‘furloughed workers’, and their details along with earnings information will need to be sent to HM Revenue & Customs (HMRC). Employers can then reclaim up to 80% of furloughed workers’ wage costs, up to a maximum cap of £2,500 per month, in order to avoid these individuals being placed in situations of
| Professional in Payroll, Pensions and Reward | May 2020 | Issue 60 6
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