Coronavirus Job Retention Scheme

(asked on 24th November 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will (a) cancel or (b) reduce the amount of national insurance and pensions contributions that employers are required to pay for employees using the Coronavirus Job Retention Scheme.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 2nd December 2020

Some businesses will be affected by coronavirus more deeply and for longer than others, and the Government will seek to support these firms appropriately. This is why on 31 October the Government announced that the Coronavirus Job Retention Scheme (CJRS) would be extended until the end of March 2021, with eligible employees receiving 80% of their reference salary for hours not worked, up to a maximum of £2,500 per month. Businesses will have flexibility to use the scheme for employees for any amount of time and shift pattern, including furloughing them full-time.

There will be no employer contribution to wages for hours not worked. Employers will only be asked to cover National Insurance and Employer pension contributions for hours not worked. For an average claim, this accounts for just 5% of total employment costs or £70 per employee per month.

Helping people save for their futures remains a key priority for the Government, and employers are still required to comply with obligations under automatic enrolment to enrol employees into workplace pensions and then make contributions. About 40% of employees using the CJRS are below the National Insurance Contribution and Pensions threshold, and therefore will have no employer costs in the CJRS. Furthermore, many small employers can benefit from the Employment Allowance for support with their National Insurance Contribution bill.

The Chancellor has always been clear that the Government would keep the situation under review, adapting its approach as the context evolved. In January, the Government will review the CJRS policy, taking into account economic circumstances across the UK.

Reticulating Splines