Job Retention Scheme
The Job Retention Scheme (JRS) aims to support employers whose operations have been severely affected by Coronavirus and reduce the number of staff being made unemployed. Under the JRS, employers are able to furlough staff and claim a grant from HMRC that covers 80% of their usual monthly wage costs, up to £2,500 a month, plus the associated Employer National Insurance contributions and pension contributions (up to the level of the minimum automatic enrolment employer pension contribution) on that subsidised furlough pay. JRS claims can be backdated – until the 1 March – where employees have already been furloughed prior to making the claim.
Guidance on the operation of the JRS is available at the link below:
Private and Third Sector Bodies
Private and Third Sector Bodies which are partly funded from the public purse may also be dependent on income from other sources, including commercial activities, fees and/or charges. We recognise you may not be able to operate in anything like a normal way because of Coronavirus, with significant impacts on income and the ability to continue to pay staff salaries. Organisations which are at least partly dependent on income other than funding from Government, have lost some or all of that income as a result of the impact of Coronavirus and would otherwise have to make staff redundant are able to furlough their staff and claim a Job Retention Scheme grant from HMRC.
It is, of course, a matter for you as employers to agree with your staff whether furlough is necessary and appropriate in your particular circumstances, and organisations in receipt of public funding must always look at other solutions, including the additional grants and loans which are being made available before furloughing staff.
Organisations must only claim through the JRS in a proportionate manner: for example, an organisation which has lost 50% of its income must not claim for all staff costs through the JRS. Organisations are also able to top up the funding received from HMRC to maintain staff income at normal levels. This is something the Welsh Government would encourage unless it is wholly unsustainable.
Duplication of Funding
Organisations must not duplicate or ‘double fund’ staff costs, i.e. claim funding from HMRC through the JRS as well as the usual grant funding received from Government to cover staff costs. This would be an inappropriate use of public money and he Welsh Government will seek to recover ‘double funding’ that has been claimed and paid.
Where organisations have already taken the decision to furlough staff and have had to reduce the levels of activity originally agreed with the Welsh Government, it will be important to ensure that the full amount of grant due is still necessary to sustain the organisation.
Welsh Government Grant Funding Being Passed on to other Bodies
Where Private and Third sector organisations receive funding from the Welsh Government which is subsequently allocated to other organisations we would encourage the same principles to apply as outlined in this note.
We are required to monitor the take up of the JRS and report back to HM Treasury on its usage. You will be contacted at a later date to provide this information, therefore you must retain the appropriate records/documents.