The Chancellor’s Job Support Scheme has been a lifeline for businesses over the past year, enabling them to continue paying workers’ wages and protect “viable” jobs.

Following several previous extensions, employers had expected the scheme to be withdrawn on 30 April; however, it was revealed in the recent Budget that it will now run until the end of September to give businesses more breathing room. Many had speculated that the scheme would be extended but only until June or July, so this was welcome news.

Described by the Chancellor as “one of the most generous schemes in the world”, the terms of the furlough scheme will remain the same through April, May and June. From 1 July, businesses will be asked to pay “a small contribution” of 10% towards the cost of employees’ furlough wages, with the government covering 70%. In August and September, as more businesses open, this split will shift slightly to 20% from the employer and 60% from the government.

Employees will continue to receive 80% of their salary for the duration of the scheme.

Though businesses may be able to reopen within a matter of weeks, in sectors such as retail, it may be some time before customer demand returns to pre-crisis levels. As such, the scheme will remain essential for many to operate, and the option to ‘flexibly furlough’ staff will enable businesses to reintroduce staff gradually and work around social distancing guidelines.

Who is eligible for the Job Support Scheme?

All employers with a UK bank account and UK PAYE scheme can claim the grant. There is no requirement for employers to have previously claimed the grant before 30 October 2020 for claim periods after 1 November 2020. Employers can claim if they cannot maintain their workforce because their operations have been affected by coronavirus.

For those employers who receive public funding which is used to cover staff costs, and that funding is continuing, employers are expected to use that money to continue to pay staff in the usual way. As such, they may not be eligible to furlough staff and claim under the scheme. If you are in receipt of public funding and this is used to pay all or part of staff salaries, we suggest that further advice is taken from HMRC or your public funding body before agreeing to furlough staff and making any claim under the scheme.

You can claim for any employee who was employed on 30 October 2020 as long as you made a PAYE RTI submission to HMRC between 20 March 2020 and 30 October 2020 in respect of them.

How do I claim under the Job Support Scheme?

Once you have worked out how much you are claiming for each fully or flexibly furloughed employee – see our Extended Furlough FAQ for details – you can make the claim online here.