Chancellor announces changes to Job Retention Scheme

Chancellor Rishi Sunak has announced changes to the government's Job Retention Scheme (JRS), which will be slowly wound down over the next few months.

Glasgow: 0141 221 0477 | East Kilbride 01355 230161 | Hamilton: 01698 284 888 or email accountants@ngs-ca.co.uk

Chancellor Rishi Sunak has announced changes to the government's Job Retention Scheme (JRS), which will be slowly wound down over the next few months.

The changes mean businesses will be able to bring furloughed employees back on a part-time basis from 1 July.

Furloughed staff will continue to get 80% of their salary throughout until the scheme finishes at the end of October. However, employers will be expected to gradually contribute more towards furloughed employees' salaries.

In August, the taxpayer contribution will stay at 80% but employers will have to pay national insurance and employer pension contributions.

In September, employers will be asked to start paying 10% towards people's wages, which will rise to 20% in October.

The cut-off for JRS applications is 30 June, after which new firms will not be able to join and others unable to furlough additional employees.

Commenting on the scheme, Dame Carolyn Fairbairn, Director-General at the Confederation of British Industry, said: 'Introducing part-time furloughing as more stores and factories start to open will help employees to return to work gradually and safely. Many more businesses will feel supported during this vital restart phase.

'Firms understand the scheme must close to new entrants at some point and that those using it in future will need to make a contribution to help manage the costs. However, previously viable firms not able to open until later, particularly in leisure, hospitality and the creative industries, may need further assistance in the coming months.'

Further guidance on the JRS can be found here.

Dedicated to delivering a first class client service

Nelson Gilmour Smith has been in business for over 100 years and today, we continue to build on our enviable reputation for providing excellent advice and first class service to our business and personal clients alike.

We have many clients in the local community and service businesses, small and large, across many sectors.

Learn more

Latest news
Contact Details

Please call:
Glasgow: 0141 221 0477
Kilbride: 01355 230161
Hamilton: 01698 284 888

View office Locations

Home | Contact us | Site map | Accessibility | Disclaimer | Privacy | Help |

© 2021 Nelson Gilmour Smith. All rights reserved. powered by totalSOLUTION

Nelson Gilmour Smith, Mercantile Chambers, 53 Bothwell Street, Glasgow, Lanarkshire G2 6TB
Kilbride Office : 33 Kittoch Street, East Kilbride G74 4JW
Hamilton Office : 47 Cadzow Street, Hamilton ML3 6ED
We use cookies on this website, you can find more information about cookies here.