In his announcement on Friday (29 May), the Chancellor provided details of the changes to the Coronavirus Job Retention Scheme (CJRS).

The key issues to note are:

1. Current furlough grants continue until 31 July.

2. No new claims after 30 June.
The key implication here is that an individual will need to have been furloughed for three full weeks by 30 June for a claim to be made. Therefore, they will need to have been furloughed before 10 June and anyone returning from furlough after 9 June will not be able to go back on furlough – this will presumably prevent any future furlough claims for an individual if they return temporarily (even if only for a day) during the period 9 – 30 June.

3. “Flexible” furloughing allowed from 1 July.
Part time work allowed from 1 July – furloughed employees can come back to work part time from 1 July with the employer paying the full cost of work days (and the government continuing to pay a grant up to the 80% limit for non-work/furlough days in July with lower rates in August through to October.

4. Phasing out timeline, and employer contributions from 1 August. The phasing out had previously been announced and the details have now been published.

Phasing out timeline:

For an individual who receives 80% of salary (and does not exceed the £2,500 cap) the phasing out is:

From August – employer bears employer NI and pension cost

From September – employer bears employer NI and pension cost plus 10% of the salary cost

From October – employer bears employer NI and pension cost plus 20% of the salary cost


For the most up to date guidance please follow the link below:

Updated 12th June