Yesterday evening, the Prime Minister announced that there will be a 4-week nationwide “lockdown” effective from 5 November. These restrictions will require certain businesses and venues to close.

In anticipation of the calls to support those businesses forced to close and individuals unable to work during the period, it was announced that the Coronavirus Job Retention Scheme, which was due to end on 31 October, would be extended through November.

The support provided will be in line with the August 2020 level. Employees will be paid 80% of their salary subject to the £2,500 cap. The Government will contribute the salary payment as a grant for non-worked hours, with the employer paying the salary for any worked hours and the employer NIC and employer auto-enrolment pension contributions.

There will be no gap between the previous CJRS and this extension. The extension will follow the flexible furlough rules.

To be eligible to be claimed for under this extension, employees must be on an employer’s PAYE payroll by 23:59 30th October 2020. This means a Real Time Information (RTI) submission notifying payment for that employee to HMRC must have been made on or before 30th October 2020.

Read more on GOV.UK – full guidance yet to be issued.

updated 2 November 2020