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Coronavirus Job Retention Scheme

Treasury written question – answered on 19th May 2020.

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Photo of Preet Kaur Gill Preet Kaur Gill Shadow Secretary of State for International Development

To ask the Chancellor of the Exchequer, with reference to companies in administration that may wish to apply for the Coronavirus Job Retention Scheme, what criteria need to be met for those companies to have a reasonable likelihood of being able to re-hire workers at the end of the furlough period; and whether he has plans to update the guidance on eligibility criteria for that scheme.

Photo of Jesse Norman Jesse Norman The Financial Secretary to the Treasury

The Government guidance is clear that to be eligible for the Coronavirus Job Retention Scheme, firms must have created and started a PAYE payroll scheme on or before 19 March 2020; be enrolled for PAYE online; and have a UK bank account. As such, any entity with a UK payroll can apply.

Where a company is being taken under the management of an administrator, the administrator will be able to access the Job Retention Scheme. The Government would expect that an administrator would only apply for the scheme if there is a reasonable likelihood of the employees remaining employed; for example, because there is a real prospect of the company being taken on as a going concern, or an active pursuit of a sale of the business.

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