CJRS V2 Launches on July 1st, Part-Time Workers Eligible for Support
- UK government confirms changes to ‘flexible’ furlough scheme
- CJRS V2 launching on 1 July
- Employers can bring furloughed employees back part-time while claiming CJRS grant for unworked hours
- 80% wage coverage up to £2,500 cap per month for furloughed hours
- Wage caps proportional to hours furloughed
- Employers can top up wages above 80% and £2,500 cap at their own expense
- Furlough scheme extended until October with greater flexibility
The UK government has confirmed the latest changes to its ‘flexible’ furlough scheme, known as CJRS V2, ahead of its launch on July 1st. HM Revenue and Customs (HMRC) has provided new guidance as the current Coronavirus Job Retention Scheme (CJRS) comes to an end on June 30th. From July 1st, employers can bring furloughed employees back to work for any amount of time and shift pattern while still being able to claim CJRS grant for unworked hours. Starting August 2020, the grant level will be reduced each month. To be eligible for the grant, employers must pay furloughed employees 80% of their wages, up to a cap of £2,500 per month for the time they are on furlough. Wage caps will be proportional to the hours an employee is furloughed. For example, an employee entitled to 60% of the £2,500 cap if they’re furloughed for 60% of their usual hours. Employers can also top up employee wages above the 80% total and £2,500 cap at their own expense for unworked hours. In May, Rishi Sunak announced an extension of the government’s furlough scheme until October, with no changes to the current scheme until July and greater flexibility from August to October.
Factuality Level: 10
Factuality Justification: The article provides accurate and objective information about the changes to the UK’s furlough scheme, citing specific details such as dates, eligibility requirements, and employer responsibilities. It also references the source of this information (HM Revenue and Customs) and includes relevant background information about the extension of the scheme announced by Rishi Sunak.
Noise Level: 2
Noise Justification: The article provides relevant information about changes to the UK’s furlough scheme and offers a clear explanation of how it will operate from July onwards. It also includes specific details about wage caps and employer responsibilities. The article is concise and stays on topic without diving into unrelated territories.
Financial Relevance: Yes
Financial Markets Impacted: UK job market and businesses
Financial Rating Justification: The article discusses changes to the UK’s Coronavirus Job Retention Scheme, which directly impacts employers and employees’ wages, affecting their financial situation and potentially influencing business decisions and the overall economy.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the article.
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