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Chancellor expands furlough scheme – how will this effect you and your business?

Chancellor Rishi Sunak has just announced an extension to the Job Support Scheme, which is due to begin on 1 November 2020. Today’s announcement targets businesses who are required to shutdown due to local lockdowns and is in addition to the existing schemes announced. The final direction has still to be issued but the basics are set out below;

Last month, the government announced how the Job Support Scheme would contribute 1/3 of the shortfall of wages (capped at £697.72pm) for employees who were working reduced hours, but working at least 33% of their normal (pre-furlough) hours. The employer would contribute a further 1/3 of the shortfall, and the employee would forego the final third.

Will my business by eligible for the extension?

The extension applies to any businesses required to close their premises due to local or national coronavirus restrictions. In that situation, the government will pay two thirds of their employees’ salaries, up to a maximum of £2,100 per month. Under the scheme, employers will not be required to contribute towards wages and will only be asked to cover NICS and pension contributions.

Businesses will only be eligible to claim the grant while they are subject to restrictions and employees must be off work for a minimum of seven consecutive days.

When does the scheme begin?

The scheme will begin on 1 November and will be available for six months, with a review point in January 2021. In line with the rest of the JSS, payments to businesses will be made in arrears, via a HMRC claims service that will be available from early December.

Employees of firms that have been legally closed in the period before 1 November are eligible for the CJSS.

Gov.UK are suggesting grants for businesses required to close in local lockdowns also increased to up to £3,000 per month – for more details click here

Team HB would like to thank Newman HR for providing details for our summary above.

We hope this information helps you and we are here for you during this difficult time. We will continue to keep you updated as the Government releases new information. Our business contingency plan is in place and we will do everything we can to support our clients during this uncertain period, please do not hesitate to contact us here if you have any concerns or queries.

Visit our COVID19 Business Hub for more information


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The information contained above is for general guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, please note that each individual has different circumstances and it is essential that you seek appropriate professional advice before you act on any of the information contained herein. HB Accountants can accept no liability for any errors or omission or for any person acting on or refraining from acting on the information provided in the above


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