Furlough and covid: a complete guide

What is furlough? What is the Coronavirus Job Retention Scheme? What benefits can I receive while on furlough? If you are employed and on furlough, you may still be eligible for a number of benefits. This Your Benefits article will walk you through everything you need to know.

What is furlough?

Furlough is a leave of absence. Indeed, during coronavirus employers were able to cover their employees’ wages. Indeed, this is for employees who were on furlough because of the pandemic. More specifically, they were able to do so through the Coronavirus Job Retention Scheme.

Note that the Coronavirus Job Retention Scheme ended on 30 September 2021. The information in this article will be for those who were able to claim before then.

Am I eligible for the Coronavirus Job Retention Scheme if my employees are on furlough?

You, as an employer, may check if you are eligible to cover your employees’ wages. Indeed, this could be the case. To be eligible and apply, you will need to go through a number of steps.

First, you will check if you qualify. Second, you will what employees you may put on furlough. Third, you will gather the information you need to calculate how much you may claim. Fourth is the calculation of how much you could receive. Fifth, you can submit the claim to cover your employee’s wages online. Lastly, you may report the payment in PAYE RTI (Real Time Information).

In order to be eligible, the following must be true, you:

have a bank account in the United Kingdom, the Isle of Man, or the Channel Island
are enrolled for PAYE
- this must have been done online
made and started a PAYE payroll scheme on or following 2 March 2021
- this scheme must have been done for a period that began on or following 1 May 2021

Disclaimer

You may operate an entity with a United Kingdom Payroll. Indeed, this could be a public authority, recruitment agency, charity or business. In this case, you may still apply.

Can I ask my employees to do things while on furlough?

There are a number of things you may not ask your employees to do while they are on furlough. Indeed, you cannot demand that they do work for which any of the following is true:

the work makes money
- this is either for your organization, or for any organization that is associated or linked with your organization
provide a service
- this cannot be done either for your organization, or for any organization that is associated or linked with your organization

However, there are a number of things that your employee is able to do when on furlough. Indeed, they can do the following:

work for another employer
- this is if their contract allows it
volunteer work for another organization or employer
partake in a training course

Additionally, note that they retain their employee rights. As such, they can still claim the following:

annual leave
maternity and other parental rights
rights that protect them against unfair dismissal
redundancy payments
Statutory Sick Pay (SSP)

Important

Note that businesses will continue to monitor businesses after this scheme is closed to new applications. As such, remember that redundancy payments may not be substituted by grants.

Can I claim the Coronavirus Job Retention Scheme if my employees are on furlough?

The scheme closed as of 30 September 2021. As such, you may not submit a new application for this scheme.

If you want to know what benefits you can claim, Your Benefits can help. Indeed, we provide a free simulator that can calculate the total amount of benefits you could earn. Again, it’s free!

Our advisers are also available to help you save on all your bills. Indeed, this includes your electricity, phone, water bill… Simply asked to be called back, and you may benefit from this service.

What benefits can I get while on furlough?

If you are on furlough, you retain your employee rights. This means, in part, that you can still earn certain benefits. One of these benefits is Statutory Sick Pay (SSP).

There are also other benefits and schemes you may still benefit from. Indeed, you retain your maternity and other parental right. This means that you can still benefit from Maternity Pay and Leave. Additionally, you could benefit from Paternity Pay and Leave.

You may be unsure of all the benefits you are entitled to. This may be the case even if you are not on furlough. Your Benefits can help! We provide a free simulator. Indeed, it can show you exactly how much you may earn in financial aid.

Furthermore, our advisers are available to help you save on all of your bills. This includes electricity, water, phone… Simply ask to be called back in order to benefit from this service.

Lastly, we offer a service that allows you to not have to worry about administrative tasks. Indeed, we can take care of them for you.

What is Statutory Sick Pay?

Statutory Sick Pay (SSP) is a benefit you could earn while on furlough. Indeed, you could receive up to £96.35 weekly if you are unable to work. This must be due to an illness.

Disclaimer

Statutory Sick Pay (SSP) is paid by your employer. You may earn it for a maximum of 28 weeks.

You will earn Statutory Sick Pay (SSP) for ‘qualifying days’. Qualifying days are the days you would have worked but did not. Indeed, this must be because you were sick.

Note that you will not earn Statutory Sick Pay (SSP) for the first 3 days you are off work. Indeed, they are known as ‘waiting days’. Below is a table of how much you may earn given the number of ‘qualifying days’ in a week:

Statutory Sick Pay rates by 'qualifying days' in a week as of April 2021
Unrounded Daily Rate	Number of qualifying days in week
13.7642	7
16.0583	6
19.2700	5
24.0875	4
32.1166	3
48.1750	2
96.35	1

You may be able to be paid for the first 3 days you were sick. Indeed, this is if you received SSP in the previous 8 weeks. Then, if this SSP period contained a 3 day waiting period, you will be paid for these waiting days.

Statutory Sick Pay (SSP) is paid the same way as your wages. If you get your income weekly, you will receive SSP at the same rate. Same if it is monthly. Also note that National Insurance and tax will be deducted from your payments.

What is Maternity Pay?

If you are on furlough, you may still be eligible to receive Maternity Pay. Indeed, Statutory Maternity Pay is a benefit for soon to be mothers. You may receive it for a total of 39 weeks. You get a certain amount for 6 weeks, then another for the following 33.

It is possible that you are receiving Shared Parental Pay instead. If this is the case, you could continue to earn this while on furlough.

However, note that when receiving this benefit, you may not receive Statutory Maternity Pay (SMP).

Statutory Maternity Pay is based on your weekly earnings. There is a different amount for the first 6 weeks and the following 33. Indeed, for the first 6 weeks, you will receive 90% of your weekly earnings (the average before tax).

Then, for the next 33 weeks, you could receive one of two amounts, whichever is lower:

£151.97
90% of your average weekly earnings

Note that you may earn the same amount for all 39 weeks. This is the case if your average weekly earnings are less than £151.97. Then, you would get 90% of your average weekly earnings for 39 weeks, if you are eligible.

What is Paternity Pay?

The weekly rate for Statutory Paternity Pay is one of two, whichever is lower. Indeed, it could be either:

£151.97
90% of your average weekly earnings

Statutory Paternity Pay is paid the same way as your wages. If you get them weekly, you will receive your Paternity Pay at the same rate. Same if it is monthly. Also note that National Insurance and tax will be deducted from your payments.

Being on furlough means that you are still entitled to parental rights and benefits. This is because you retain your employment rights. However, note that Paternity Pay and Leave often go hand in hand.

As such, you will start getting Paternity Pay at the same time that you go on Paternity Leave. However, note that the day that your Paternity Pay starts and ends needs to be confirmed. More specifically, your employer needs to confirm it.

You may want to change the starting or end date of your Paternity Pay. To do so, you must notify your employer at least 28 days in advance.

What are some other employment rights?

You may be on furlough under the Coronavirus Job Retention Scheme. Then, you are entitled to retain your employment rights. This includes a couple of things. First, you retain the right to return to work. Indeed, this is true for you if you receive one of the following: