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Research: Disclosure of Information

Question for Treasury

UIN 55067, tabled on 4 June 2020

To ask the Chancellor of the Exchequer, what steps his Department is taking to ensure that furloughed employees of umbrella companies receive a payment that is 80 per cent of the income that they received before the covid-19 outbreak.

Answered on

11 June 2020

Since the Government announced the unprecedented Coronavirus Job Retention Scheme (CJRS), over 8.9m jobs have been furloughed, helping over 1 million employers keep people in employment.

The CJRS covers employees on any type of contract and is open to any individual who was on an employer’s PAYE payroll on 19 March 2020, provided that HMRC received an RTI submission notifying payment in respect of that employee on or before 19 March 2020. Where agency workers (including those employed by umbrella companies) are paid through PAYE, they are eligible to be furloughed and receive support through the scheme.

Depending on the circumstances, either the agency or umbrella company can apply through CJRS for a grant that covers 80% of furloughed employees’ usual monthly wage costs, up to £2,500 a month, plus the associated Employer National Insurance contributions and pension contributions.

Further guidance for employers and employees can be found on GOV.UK.

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