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    Coronavirus Job Retention Scheme (CJRS) extended until September 2021

    Chancellor, Rishi Sunak, announced in the Spring Budget the extension of the Coronavirus Job Retention Scheme (CJRS) until 30 September 2021. This is welcome news for many businesses who have been forced to close or seen reduced demand due to COVID-19.

    The extension means that the CJRS scheme will remain in place for several months after the planned full reopening of the economy in England on 21 June 2021.

    What’s changed?

    The scheme will continue to pay up to 80% of an employee’s wages, up to £2,500 per month.

    However, from 1 July, employer contributions will gradually increase:

    – From 1 July to 31 July 2021 – employers will need to contribute 10% of wages, with the Government paying the remaining 70%.

    – From 1 August to 30 September – employers will be required to pay 20% of wages, with the Government paying the remaining 60%.

    As with the current rules governing the CJRS scheme, employers will continue to be required to pay employer National Insurance Contributions as well as pension contributions on furlough payments. Employers can also choose to ‘top-up’ employees wages to 100%, however, they are under no obligation to do so.

    Flexible furlough will also continue, whereby employees can work part time and receive a part-payment from the CJRS scheme for their unworked hours – allowing businesses to gradually bring their employees back to work progressively as the economy reopens.

    A further notable point is that employers can claim for new employees who started working for them between 31 October 2020 and 2 March 2021 but will need to wait until May 2021 before they are able to furlough them. However, the guidance indicates that employers cannot claim for any new employee who is recruited on, or after, the 3 March 2021.

    For more information and full guidance from, click here.

    Dates for claiming up to April 2021

    Deadlines to claim CJRS between now and April are:

    – 15 March 2021 by 11.59pm for February claims

    – 14 April 2021 by 11.59pm for March claims

    – 14 May 2021 by 11.59pm for April claims

    What will happen to the Job Retention Bonus and Job Support Scheme?

    The previously announced Job Retention Bonus and Job Support Scheme (which the Government had intended to follow on from the furlough scheme) seem to have been postponed indefinitely and now look unlikely to be introduced, but we will provide updates as further guidance is announced.

    Further information

    For advice tailored to your situation, or support with submitting CJRS claims, please speak to your usual PM+M representative, or get in touch here



    This information is correct as of 11 March 2021. This blog is for general guidance only. Recipients should not act upon any of the information provided without seeking specific professional advice tailored to your circumstances, requirements or needs. Please contact PM+M before making any decisions based on any matters relating to this blog.

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