COVID-19: CJRS guidance updated to confirm parents and carers are eligible for furlough

On 5 January 2020, HMRC updated its guidance on the Coronavirus Job Retention Scheme (CJRS) to confirm that employees may be furloughed if they are unable to work or are working reduced hours because of caring responsibilities which have arisen as a result of COVID-19.

The amended guidance states that caring responsibilities include caring for:

• Children who are at home as a result of the closure of schools or childcare facilities.
• A vulnerable individual in the household.

Employees in this situation are encouraged to speak to their employer about whether they plan to furlough staff.

The changes come after both the Labour Party and the TUC called on the government to provide greater support for parents during the UK's third lockdown. In a letter to the Chancellor of the Exchequer, Shadow Chancellor Anneliese Dodds warned that parents, particularly mothers, were at risk of losing their jobs as a result of the school closures. Indeed, the TUC stated that during school closures in March, one in six mothers reduced their working hours due to school and nursery closures, with single parents also greatly affected.

Along with the TUC, Dodds called for better promotion of the CJRS to increase employer awareness of how it can be used to support working parents with childcare responsibilities. This has at least in part been achieved by the amended guidance. However, Dodds suggested that these changes should be made alongside a re-assessment of employer contributions within the CJRS, which at their current rate may act as a disincentive for employers to furlough parents. There is no indication that the government is considering acting upon this aspect of her request.