Lockdown 2.0 from 5 November

On Saturday evening, 31 October, the Prime Minister announced a new lockdown in England from Thursday 5 November until at least 2 December.

The Coronavirus Job Retention Scheme, which has been with us in various forms since March was set to end on 31 October, to be replaced by the Job Support Scheme. That is all on hold now and the CJRS / Furlough scheme is back, different, but similar to the previous version.

The CJRS Furlough scheme continues

This extension of the CJRS Furlough scheme is broadly equivalent to the rules that applied during August. One key change is that this support scheme is available regardless of whether employers took advantage of the original CJRS grant scheme.

Eligibility is extended to employees on the payroll as at 30 October 2020 and unlike the JSS and the previous Furlough scheme, new CJRS claims will be paid upfront to cover wages costs.

The government will pay 80% of wages up to a cap of £2,500 which must be paid in full to the employee. Employers will pay employer National Insurance Contributions (NICs) and pension contributions only for the hours the employee does not work.

  • Employers can top up the scheme if they wish
  • As under the current CJRS, flexible furloughing will be allowed in addition to full-time furloughing
  • The Job Support Scheme will be introduced following the end of the CJRS

More details of the operation of the scheme will be published shortly.