£39.3 billion paid out in claims under the CJRS 24 September 2020
The latest figures released by HMRC reveal that, as of midnight on 20 September 2020, £39.3 billion has been paid out to businesses under the Coronavirus Job Retention Scheme (CJRS). This is an increase from £35.4 billion recorded in relation to 16 August 2020. The total number of jobs furloughed has remained at 9.6 million since 2 August 2020, but this is in line with guidance that stated that, from 1 July 2020 onwards, the maximum number of employees placed on furlough must not exceed the maximum included in a previous claim. The number of employers claiming through the scheme has also remained unchanged and has stood at 1.2 million since data extracted from 12 July 2020. The scheme is due to close at the end of October 2020, and in its final month will see the government paying 60% of wages up to a maximum cap of £1,875 for the month, for any hours that an employee was placed on furlough. Employers must pay employer National Insurance (NI) and pension contributions on all hours, including those spent on furlough, and must top up employees’ wages to ensure they receive 80% of their wages for the time they are furloughed, up to a maximum cap of £2,500 for the month.
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Flexible furlough brought 20% of employees back to work 29 September 2020
HMRC have reported that nearly a million workers returned to their jobs part-time in the first month that flexible furlough was introduced.
On the 1 July, employers could allow employees to return to work on flexible arrangements but could still claim via the Coronavirus Job Retention Scheme (CJRS) covering 80% of employee’s wages for any hours not worked.
It has been reported that 950,000 workers returned to offices, shops, restaurants, and factories on a part-time basis, which equated to 20% of those employees who were furloughed nationally.
Rishi Sunak, Chancellor of the Exchequer said:
“Figures show the success of our furlough scheme making sure people’s jobs are there for them to return to. That so many businesses have been able to get back to trading and bring their staff back to the workplace is a testament to the impact the scheme has had.” At the peak of the pandemic 1.85 million employments in the retail and wholesale sector were furloughed, but by the end of July this number had fallen to 789,000, with more than a million people finishing furlough. New figures for the Self Employment Income Support Scheme (SEISS) also illustrate which sectors have taken up the second grant, with 693,000 claims worth £2 billion being made in the construction industry as the country’s builders get back to work. 9.6 million jobs have been supported through the Coronavirus Job Retention Scheme which will cease on 31 October 2020. This support for furloughed workers and businesses will continue through the Job Retention Bonus, and other interventions in the Chancellor’s Plan for Jobs – including the Kickstart scheme.
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Deadline for last claims under CJRS confirmed 5 October 2020
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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