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CJRS: October Furlough Scheme Changes

What does it mean for your employees?

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Posted by Kimberly Preece on 24/09/2020 @ 8:00AM

For October 2020, the government will contribute 60% of wages up to a cap of £1,875.00 for the hours an employee is on furlough. Employers will still be expected to pay ER NIC'S and pension contributions ...

The changes to CJRS coming in October could have consequences for furloughed employees!

The changes to CJRS coming in October could have consequences for furloughed employees!

copyright: andreypopov / 123rf

They must also top up their employee's wages to ensure that they receive 80% of their wages up to a cap of £2,500.00 for the time they are on furlough. While this does not affect employees on the face of it, there could be a serious consequence to this timetable.

If an employer doesn't believe a role will be viable if it needs to start paying for it, there's a chance that this escalation of employment costs for the employer could tip it over the edge in seeking to make employees redundant. We hope this will not happen, but there is a chance.

Chancellor Rishi Sunak said:

"Our top priority has always been to support people, protect jobs and businesses through this crisis. The furlough and self-employment schemes have been a lifeline for millions of people and businesses.

We stood behind Britain's businesses and workers as we came into this crisis and we stand behind them as we come through the other side. Now, as we begin to reopen our country and kick-start our economy, these schemes will adjust to ensure those who are able to work can do so, while remaining amongst the most generous in the world."

The Resolution Foundation said the number of furloughed workers peaked at 8.9 million in early May, falling to 6.8 million by the end of June - with millions still currently on furlough.

Other figures put the peak of furlough at 9.5 million people.

Until next time ...



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About Kimberly Preece ...


Kimberly is currently studying towards her final exam for the Level 4 AAT Professional Diploma and is part of the accounts team at Essendon. Kimberly's main duties at Essendon are accounts preparation, payroll processing and carrying out bookkeeping duties.

In her spare time, she enjoys her studies and spending time with the people that mean the most to her.


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