Legal Business lifeline BPA Lawlines Derek Millard-Smith, Annabel Reeves and Paul Chamberlain look at the extended furlough scheme and what it means for your business s national and local lockdowns brought a halt to the usual early Christmas shoppers flocking to our high streets this autumn, businesses and the economy took another hit. For all industries that continue to be affected, including the parking sector, the furlough scheme is more vital than ever. Evidence from the first lockdown indicated that the economic effects on businesses are much longer lasting than the length of the restrictions. A Extended furlough scheme Guidance from the government indicates that: For an average claim, this accounts for just five per cent of total employment costs, or 70 per employee per month. The CJRS extension will be reviewed in January to examine whether the economic circumstances are improving enough for employers to be asked to increase contribution. This means the extended scheme is more generous than it was in October. Then, the maximum government contribution was 60 per cent of the employees salary, up to a cap of 1,875 per month, with the employer paying 20 per cent, up to a maximum of 625 per month. Hopefully, by the time you are reading this, preChristmas activity can restart on our high streets and in our car parks, but government financial support remains critical for businesses in the coming months.* Evidence from the rst lockdown indicated that the economic effects on businesses are much longer lasting than the length of the restrictions On 31 October, the Prime Minister announced that the furlough scheme the Coronavirus Job Retention Scheme (CJRS) will be extended until December. It was a very last-minute change to policy, given that the curtailed CJRS was due to end at midnight on 31 October! On 5 November the day the second national lockdown began in England the government announced that the scheme would be extended until the end of March, in an effort to protect millions of jobs across the nation and help businesses get back on their feet. Under the extended scheme, the government will pay up to 80 per cent of the employees normal pay for hours not worked, up to a maximum of 2,500 per month. Employers will be responsible for national insurance and pensions contributions (unlike the original CJRS), and will still be able to top up employee wages above the scheme grant should they wish to do so. Should you have any queries about dealing with workplace issues arising from the Covid-19 outbreak, please contact Derek Millard-Smith or Paul Chamberlain on bpa@jmw.co.uk and 0345 241 3024. Derek Millard-Smith BPA Lawline 30 britishparking.co.uk PN Dec 2020 pp30-31 legal feature pages.indd 30 23/11/2020 16:12