Walpole welcomes Chancellor’s extension of Job Retention Scheme
The Chancellor has announced an extension to the eligibility date of the Job Retention Scheme from 28th February to 19th March, the day before the scheme was launched: Up to 200,000 more employees should be eligible to receive support.
Employers can now claim for furloughed employees that were employed and on their PAYE payroll on or before 19th March. However, if an employer is considering rehiring a former employee in order to furlough them, the cut-off date remains 28th February.
The Treasury has said it expects the scheme to be fully operational by next week. The HMRC portal through which employers will be able to access the funding will be operational from Monday 20th April and Walpole believes the government funds should start to reach businesses by 25th April.
The Job Retention Scheme is designed to maintain the link between employers and employees during the current crisis so that when lockdown measures are eased and life can start to go back to normal businesses will be able to access their skilled workforce and begin to recover.
Under the terms of the scheme employers can claim a government grant to cover 80% of the wages of a furloughed employee, up to a cap of £2,500. Many Walpole brands have topped this up to 100% of salary.