Rishi Sunak has extended the Coronavirus Job Retention Scheme (CJRS) following the government’s decision to introduce a second national lockdown in England.
On 31 October, the Prime Minister confirmed that a new English four-week lockdown, designed to stem the spread of COVID-19, would begin on 5 November. In response, the Chancellor subsequently announced that the CJRS would remain available across all parts of the UK operating under the highest levels of restrictions.
The extended scheme will run until the end of March, with the government paying 80% of wages up to a maximum of £2,500 per month until the end of January 2021. A policy review is scheduled for this time to determine whether the situation has improved sufficiently to ask employers to contribute beyond NICs and pension contributions for the remainder of the extension. The value of the next self-employed grant (covering November to January) has also been increased to 80% of average profits, capped at £7,500 for the three-month period.
Federation of Small Businesses National Chair Mike Cherry welcomed the “bold and much-needed” move but added, “Too many new business owners, sole traders, company directors and entrepreneurs without business premises are still largely excluded from support measures. That urgently needs to change, and local authorities must use discretionary funds to help these groups wherever possible.”