Coronavirus Job Retention Scheme – October

From 1 October, the government will only pay 60% of wages for the hours the employee is on furlough (up to a cap of £1,875). Employers will continue to pay Employers NI and pension contributions and also pay the top up of 20% to ensure they receive 80% of their wages for time they are furloughed (up to a cap of £2,500).

Employers will continue to able to choose to top up employee wages above the 80% total and £2,500 cap for the hours not worked at their own expense if they wish. Employers will have to pay their employees for the hours worked.

What to expect going forward…

A number of the government’s ways to support jobs and employment – including the Coronavirus Jobs Retention Scheme (CJRS) are due to come to a close at the end of October, while other schemes – such as the Job Retention Bonus, Kickstart Scheme and recently introduced Job Support Scheme – begin to take effect.

Job Retention Bonus

The Job Retention Bonus is a one-off payment to employers of £1,000 for every employee who they previously claimed for under the scheme, and who remains continuously employed through to 31 January 2021. Eligible employees must earn at least £520 a month on average between the 1 November 2020 and 31 January 2021. Employers will be able to claim the Job Retention Bonus after they have filed PAYE for January and payments will be made to employers from February 2021.

Find out if you can claim: Job Retention Bonus eligibility


Kickstart Scheme

The Kickstart Scheme provides funding to employers to create new, 6-month job placements for young people who are currently on Universal Credit and at risk of long-term unemployment. Applications must be for a minimum of 30 job placements to be eligible for funding from the government. Jobs from the Kickstart Scheme will be open to people aged 16-24 years old.

Find out more: Kickstart Scheme


Job Support Scheme

The Job Support Scheme is designed to protect viable jobs in businesses who are facing lower demand over the winter months due to Covid-19, to help keep their employees attached to the workforce.

What you need to know about the scheme:

  • Employees will need to work a minimum of 33% of their usual hours. For every hour not worked, both the employer and the government will pay one third of the employee’s usual pay (government contribution capped at £697.92 per month)
  • Employees using the scheme will receive at least 77% of their pay, where the government contribution has not been capped
  • The employer will be reimbursed for the government contribution
  • The employee must not be on a redundancy notice

This scheme will run for six months from 1 November 2020 and will be open to all employers with a UK bank account and UK PAYE scheme. All Small and Medium-Sized Enterprises (SMEs) will be eligible. Large firms will have to justify and demonstrate that they have been largely affected by COVID-19 before they can claim under this new scheme.

Find out more: GOV Job Support Scheme Factsheet