UPDATE: Coronavirus Job Retention Scheme and flexible furlough
The Coronavirus Job Retention Scheme is changing:
From 1 July, employers can bring back employees that have previously been furloughed for any amount of time and any shift pattern, while still being able to claim CJRS grant for their normal hours not worked. When claiming the CJRS grant for furloughed hours employers will need to report and claim for a minimum period of a week.
Last date for accessing the furlough scheme
The scheme will close to new entrants from 30 June. From this point onwards, employers will only be able to furlough employees that they have already furloughed for a full 3 week period prior to 30 June.
The final date by which an employer can furlough an employee for the first time will be 10 June, in order for the current 3 week furlough period to be completed by 30 June. Employers will have until 31 July to make any claims in respect of the period to 30 June.
Change to amount of CJRS
June and July:
- The government will pay 80% of wages up to a cap of £2,500 as well as Employer National Insurance (ER NICs) and pension contributions.
- Employers are not required to pay anything.
- The government will pay 80% of wages up to a cap of £2,500.
- Employers will pay ER NICs and pension contributions – for the average claim, this represents 5% of gross employment costs.
- The government will pay 70% of wages up to a cap of £2,187.50.
- Employers will pay ER NICs and pension contributions and 10% of wages. For the average claim, this represents 14% of gross employment costs.
- The government will pay 60% of wages up to a cap of £1,875.
- Employers will pay ER NICs and pension contributions and 20% of wages. For the average claim, this represents 23% of the gross employment costs.
Extension of the Self-Employment Income Support Scheme
Those eligible for the SEISS will be able to claim a second and final grant in August. The grant will be worth 70% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £6,570 in total.
Individuals can continue to apply for the first SEISS grant until 13 July. Under the first grant, eligible individuals can claim a taxable grant worth 80% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £7,500 in total.
The eligibility criteria are the same for both grants, and individuals will need to confirm that their business has been adversely affected by coronavirus. An individual does not need to have claimed the first grant to receive the second grant: for example, they may only have been adversely affected by COVID-19 in this later phase.
UKFT is in constant dialogue with the government and is outlining the latest support available for businesses on our website. We will update the details as and when the situation changes.
The UK Fashion & Textile Association (UKFT) is the most inclusive network for fashion and textile companies in the UK. We bring together designers, manufacturers, suppliers, agents and retailers to promote their businesses and our industry, both in the UK and throughout the world.