Job Retention (Furlough) Scheme - Important Updates

The Chancellor announced changes to the Coronavirus Job Retention Scheme (“the furlough scheme”) on Friday evening, which is now set to be open to the end of October.

Dated: 01 June 2020 Author: James Hunt, Employment Services Senior Manager

Whilst we await full details from Government in some areas, a summary of the known information is below.

Furlough Scheme Update

Key Dates

10 June

Cannot start a furlough period for an employee after this date (careful planning is required)

12 June

Further guidance, particularly on flexible furlough, to be published

1 July

Can only claim for employees who have been on furlough for the previous 3 weeks from this date

Flexible furlough starts: furloughed employees can be brought back to work part time and the employer can claim for hours not worked

31 July

Final date for employers to claim for the periods up to and including 30 June 2020


Changes to grant entitlement, for claim periods from the dates listed below:

1 Aug

Employer National Insurance and pension contributions no longer claimable

1 Sep

Grant drops to 70% of reference pay, subject to a cap of £2,190 per month ( *Employee must still be paid at least 80%)

1 Oct

Grant drops to 60% of reference pay, subject to a cap of £1,875 per month ( *Employee must still be paid at least 80%)

Flexible Furlough

From 1 July, a furloughed employee can return to work part-time. You can claim in relation to hours not worked.

A return to work must be agreed (and confirmed in writing) and claim periods must be a minimum of one week. The grant claim will be based on hours not worked of the employee’s usual’ hours, be proportionate to hours not worked, and will require details of both elements.

We await specifics (hopefully in 12 June guidance), particularly for employees with no usual hours.


The scheme is further complicated by these changes, and we were already seeing businesses getting caught out or making mistakes with aspects of the calculations.

We can offer support with all aspects of the scheme, including:

  • Calculations – how much they must pay to employees and how much they can claim
  • Submission to HMRC
  • Claim audit – to ensure that claims they have, or intend to, submit are correct
  • Ad-hoc advice – answering all scheme related queries

Take Action Now

Please contact us to discuss the challenges you are facing and the solutions available to you by calling 0845 555 8844 or simply complete our enquiry form.  Don’t wait, take advice now, we are here to help you.