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10 March 2021

All change....Again....and Again! ...And (surprise) yet again

 

Summary facts of the latest furlough scheme extension (March 2021):

The government's furlough scheme pages continue to be intermittently updated - the new scheme largely follows the first scheme, with the key exception being the change of dates in who can be eligible - this was changed in October to include anyone that was already reported as on the payroll on 30th October, and has now been changed again - For periods from 1‌‌ ‌May 2021 onwards, eligible employees who were employed and on PAYE payroll on 2 March 2021 will be able to be claimed for.

Unfortunately, the Job Retention Bonus – set to be paid for employers who kept people on furlough until the end of January at a rate of £1,000 per employer has been shelved indefinitely. We may see its return as HMRC have said that “An alternative retention incentive will be put in place at the appropriate time”, but as we know, nothing is guaranteed these days.  We have already spoken to clients who are very frustrated by this as it had been built into budgeting plans.

Another thing to note is that people who were previously on the payroll but were since made redundant may be re-employed and furloughed (qualifying dates apply) but we would express extreme caution if you are thinking of doing this – please contact Embrace HR if this is a consideration as you will need to consider the circumstances carefully and look at the employment law implications. 

Note that with effect from 1st December 2020, employers are 20no longer be able to reclaim the relevant proportion of notice pay via the furlough scheme.    

You may find the following page a useful starting point if you’re looking at what else might be available for your business:

https://www.gov.uk/guidance/help-and-support-if-your-business-is-affected-by-coronavirus-covid-19

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