Commons Sense

House of Commons · Written Ministerial Statement

Update on the Coronavirus Job Retention Scheme and Self-Employment Income Support Scheme

03 June 2020 · Treasury

Proposed by Rishi Sunak Con Richmond and Northallerton

Employment

Summarised by AI from the official record, so it can contain mistakes.

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At a glance

Key points

  • The Coronavirus Job Retention Scheme will be updated to allow employers to bring back furloughed employees with reduced state support starting in July.
  • The CJRS updates will see state support gradually phase out by October.
  • The Self-Employment Income Support Scheme will extend to offer a second grant in August for eligible individuals.

Issue summary

The statement discusses updates and extensions of the Coronavirus Job Retention Scheme (CJRS) and Self-Employment Income Support Scheme (SEISS).

Action requested

From July, employers can bring back furloughed employees with reduced state support gradually phasing out by October. The SEISS will extend to offer a second grant in August for eligible individuals.

Key facts

  • More than 8 million jobs have been protected under the CJRS.
  • Over 1 million firms benefitted from the scheme.
  • As of June 30, employers must complete their first claim and can use flexible furlough options starting July 1.
  • In August, employers will start paying Employer NICs and pension contributions; in September they pay an additional 10% of wages; by October, it's 20% up to a cap of £2,500.
  • Around 40% of employers have not claimed for NICs or employer pension costs, potentially unaffected by changes starting August.
  • The SEISS first grant application deadline is July 13 with 2.5 million individuals having already applied worth £7.2 billion total.
  • A second and final taxable grant under the SEISS will be available from August.
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