We have been working with academies and schools who have accessed the Coronavirus Job Retention Scheme for the private income streams, most notably for before- and after-school clubs or some nursery provision, as most staffing costs are publicly funded.
The Chancellor has now announced further reforms to the Scheme from July. We are still awaiting detailed guidance as to the operation of the Scheme but the main changes are set out below.
From 1 July, staff will be able to undertake some work part-time and be furloughed part-time. It is anticipated that employers will need to pay staff in full for the part-time hours and can then recoup pay up to the relevant limits (ie 80% in July) for the furloughed element.
Although employees who are furloughed should still receive no less than 80% of their normal pay (capped at £2,500), employers will have to start meeting some of the costs and so will not be able to recover the full amount. This means that:
- from 1 August, employers will no longer be able to claim for the employee's national insurance contributions and pension contributions
- from 1 September, employers will only be able to recoup 70% of salary (up to a maximum of £2,190)
- from 1 October, employers will only be able to recoup 60% of salary (up to a maximum of £1,875)
The Scheme will be closed to new entrants from 10 June and so consideration will need to be given as to whether to furlough staff ahead of this deadline.
It is anticipated that the Scheme will cease entirely on 31 October.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
