The Job Retention Scheme (JRS) – or the ‘furlough scheme’ has been a lifeline for many UK businesses during the ongoing COVID-19 pandemic.
The scheme has provided short-term financial support for businesses during the UK lockdown, allowing companies to pay their workers 80% of their usual wages whilst the workforce is furloughed and out of work at home.
This has helped to preserve jobs and reduce the necessity for sweeping job cuts. It’s also kept the workforce on the payroll and ready to return to employment once the business is up and running again. If you’ve made use of the furlough scheme, you’ll need to prepare for when the scheme comes to an end in October 2020.
The Government is introducing a Job Retention Bonus that is a one-off payment of £1,000 to employers for every employee who you have previously claimed for under the scheme, and are retaining as an employee through to January 31 2021.
Ensuring you’re on solid financial foundations after the furlough scheme
Prepare now for an end to the scheme, with workers returning to full employment and the imminent impact on your payroll costs.
Planning and reviewing your financial situation will be critical. And that means taking the time now to prepare and get ready for the scheme closure.
Here are some key areas to focus on:
The sooner you start planning and making changes, prior to October, the better prepared you’ll be to survive the last quarter of 2020.
Talk to us about surviving the end of furlough
If you have furloughed staff and want to be ready for an end to the furlough scheme, please do get in touch. We’ll help you review your financial health, improve your cashflow position and prepare the business for the next chapter in its success story.
Get in touch to plan your furlough exit.