Changes To The Coronavirus Job Retention Scheme

On Friday 29th May 2020, the Chancellor of the Exchequer Rishi Sunak announced a number of changes to the Coronavirus Job Retention Scheme ("the Scheme"). The changes were softer than many anticipated and will take effect over the next few months.

The Chancellor began by outlining the scope of the Scheme which, as of midnight on the 24 May 2020, had been utilised by one million employers to protect around 8.4 million jobs with the total value of claims amounting to £15 billion.

The headline points announced are:

• Employers will be required to start contributing to employee's wages under the Scheme;
• From 1st August, employers will have to have to pay employer national insurance contributions (NICs) and pension contributions and can no longer reclaim them through the Scheme;