Extension of the Coronavirus Job Retention Scheme

On Friday 29 May, the Chancellor announced details of the extension to the scheme which allows employees to be furloughed.

The scheme will continue in its current form with the government paying 80% of salaries up to a £2,500 limit until the end of July. From 1 July 2020, businesses will be given the flexibility to bring furloughed employees back part time. Employers are free to decide how this will best work for their own organisation. 

From August, the level government grant will be tapered:

• August: Government will pay up to 80% of salary with employers paying NI and pension contributions
• September: Government will up to a cap of £2,187.50 with employers paying NI and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500.
• October: Government will pay 60% of wages up to a cap of £1,875 with employers paying NI and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500. 

Further details can be found on the government website.

This scheme has been a vital lifeline for theatre operators who lost their entire ticket revenue overnight when theatres closed in March. With theatres relying on limited reserves to operate, the employer contributions will make redundancies throughout the sector inevitable and the ending of the scheme and resulting liabilities will close theatre businesses.

While tapering of the furlough scheme makes sense in other parts of the economy as businesses reopen, theatres remain closed and the majority will be unable to operate viably with social distancing measures in place. We are calling on the government to extend the Job Retention Scheme in its full form to protect our nation’s enviable theatres and the people who work in them, until such a time as theatres can reopen fully and safely”.  Read our full press release.

Photo by Glen Carrie on Unsplash