Coronavirus Job Retention Scheme

(asked on 2nd June 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the Coronavirus Job Retention Scheme, what assessment he has made of the feasibility of requiring all business to pay a percentage of the cost of the salaries of their furloughed staff from August 2020 when those businesses will reopen at different times as a result of differences in covid-19 guidance published by the devolved Administrations; and whether he plans to take steps to mitigate the effect on businesses of the differences in that guidance by amending the scheme.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 8th June 2020

An early assessment of CJRS claims suggests that about 40% of employers have not made a claim for employer NICs costs or employer pension contributions and so will be unaffected by the change in August if their employment patterns do not change.[1]

The CJRS will close at the end of October, after eight months. It is the case that some firms will be affected by coronavirus for longer than others, and the Government will seek to support these firms appropriately. It would be challenging to target the CJRS to specific sectors in a fair and deliverable way, and that may not be the most effective or sensible way to provide longer term support for those sectors most affected by coronavirus.

The Government will continue to work closely with the Devolved Administrations to support people across the UK, and monitor developments in the public health and wider economic situation, to ensure that the support being provided is appropriate for the whole UK.

[1] This estimate is based on HMRC analysis of CJRS administrative scheme level claims management information.

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