On Friday 29 May, the Chancellor provided new details about the extended Coronavirus Job Retention Scheme (CJRS), which he had announced on 12 May.

We already knew that he had listened to industry bodies and was planning to introduce the ability to bring employees back on a part-time or reduced hours basis. But that can now take place more quickly than expected, on 1 July. Employers need to note however, that this new, flexible scheme will only be available to those employees that have already been furloughed for the minimum three week period. This means the deadline for furloughing new staff is 10 June.

Whilst Sunak had already made it clear that employers would be asked to contribute during this extended period, he has now set out what those contributions will look like. In addition, he has announced that the self-employed income support scheme, which was due to end last weekend (30/31 May), will now be opened for a second and final round in August. In line with the changes to the furlough scheme, the grants will drop to 70% of earnings, up to a maximum of £6,750 for three months.

The Timeline

10 June

The final date on which employers can furlough staff in order to ensure they will qualify for the new scheme.

1 July

Employers are able to bring back furloughed staff on a part-time basis.

1 August

Government contributions of 80% of salary (up to a maximum of £2,500) continue, but employers will have to pay employer’s National Insurance and pension contributions and cannot claim these back.

1 September

The Government contribution under the CJRS will drop to 70% of salary (up to a maximum of £2,190), but employers will need to top up to 80% (or whatever higher percentage has been agreed with the employee).

1 October

The Government contribution under the CJRS will drop to 60% of salary (up to a maximum of £1,875), but employers will need to top up to 80% (or whatever higher percentage has been agreed with the employee).

31 October

The furlough scheme ends.


The HR consultants at Narrow Quay HR are available to chat through any queries you may have related to new work arrangements under coronavirus (COVID-19). Please contact our HR specialists Jo Hill on 07392 085778, Caitlin Anniss on 07909 683 938, Sarah Martin on 07799 136 091 or Simon Martin on 07834 813076