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Government extends furlough scheme for parents on statutory leave

The government has extended the Coronavirus Job Retention Scheme (CJRS) for parents on statutory maternity and paternity leave.

The Treasury recently announced that parents who are returning to work over the coming months will be eligible for the CJRS despite the scheme closing to new entrants on 30 June. Individuals on adoption leave, shared parental leave and parental bereavement leave will be eligible, but only if they work for a business that has furloughed employees.

Commenting on the matter, Chancellor Rishi Sunak said: 'When I announced these changes to the furlough scheme . . . I was clear that we wanted to do this in a fair way, that supports people back to work as the country begins to re-open following coronavirus.

'But for parents returning from leave, their circumstances have meant that they are still in need of support, and I'm pleased that they will be able to receive the financial assistance they and their family will need.'

The CJRS will close to new entrants on 30 June. In order for the minimum three-week furlough period to be completed by then, the final date which an employer was able to furlough an employee for the first time was 10 June.

The Chancellor recently announced changes to the CJRS that will apply from 1 July until its scheduled closure at the end of October. The changes mean businesses will be able to bring furloughed employees back on a part-time basis from 1 July. HMRC intends to publish further guidance on these changes on 12 June.

Information on the CJRS can be found here.