The Chartered Institute of Payroll Professionals
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Latest CJRS statistics published 7 May 2021
The 11th release of Official Statistics on the Coronavirus Job Retention Scheme (CJRS) has been published. The latest data provides analysis of claims made in relation to periods up to 31 March 2021, including claims submitted to HMRC by 14 April 2021. There is a reminder, however, that data for March 2021 could potentially be incomplete, as although claims relating to March should have been sent by 14 April 2021, employers who had a reasonable excuse for submitting their claim late could be yet to file their information. The deadline for amending claims for the period of March also sits at 28 April 2021. These two factors may have a minimal impact on the statistics for March.
Some of the key points for the period to 31 March 2021 are as follows:
• Provisional figures indicate that the number of furloughed employments decreased in the period between February and March 2021 • 4.2 million employments were furloughed as of 31 March 2021 • A cumulative total of 11.5 million jobs have been supported by the CJRS since its introduction • Furlough levels clearly reflect lockdown restrictions and also the changes to those restrictions • At the end of February 2021, 41% of employers had furloughed staff, but this decreased to 39% by the end of March 2021 • All sectors saw a reduction in furlough levels between the end of February 2021 and the end of March 2021 • The accommodation and food services sectors had the highest take-up rate in recent months, with 1.19 million employments in furlough on 28 February 2021, decreasing to 1.06 million by 31 March 2021
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Latest LPC report explains how COVID-19 has impacted compliance with NMW regulations 13 May 2021 The latest report from the Low Pay Commission (LPC) centres on the topic of non-compliance and enforcement of the National Minimum Wage (NMW) in 2021, following on from the period in which businesses and individuals have had to deal with the economic turbulence posed by coronavirus. The main findings of the report show that low-paid workers have been left more vulnerable than ever as a result of the pandemic, and that businesses have been under immense amounts of pressure during this time. Subsequently, the likelihood of the underpayment of minimum wage rates has increased significantly, and there needs to be an appropriate response from the Government to address this. Previously submitted recommendations from the LPC are reviewed within the report, which include a focus on worker support, employer engagement, and prioritisation, in terms of enforcement activity being directed to the most serious cases of non-compliance. The LPC states that there is still work to be done in relation to strengthening worker confidence in the enforcement system, in assisting employers to ensure that they comply with NMW rules and in ensu ring that HMRC’s resources are used in the most effective way. The creation of the Coronavirus Job Retention Scheme (CJRS) has caused problems in relation to producing accurate estimates of the issue of underpayment in 2020 for comparison against earlier years. If, for example, a worker has been furloughed and paid at 80% of their usual wages, then, on the surface, it may appear that they have been underpaid, but NMW rules do not apply to any time that an individual spends on furlough. The report also explores the prevalent issue of labour market abuse specifically within the textiles industry in Leicester. The LPC has collected wide-ranging data that clearly highlights the problem, which has been ongoing for years, but also recognises that there is no easy solution for enforcement bodies in this area.
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