People Group have made the decision to not continue CJRS payments for contractors after the summer holidays.

With the cost to People Group set to increase by an additional 10% in September and then 20% in October, it is not financially viable to continue to make CJRS payments.

People Group’s Terry Hillier commented:

“It’s with a heavy heart that we’ve decided not to continue furlough payments to contractors after the summer holiday period, but it really is the only option available to us. Having fought long and hard to ensure contractors could lawfully be paid during the summer holidays, with that now coming to an end we need to safeguard our business.”

Since March, People Group have not applied any processing fee (which accounts for the majority of business income), have covered the cost of the government Apprenticeship Levy and continually made payments to eligible contractors while operating costs have only reduced to 90%

During August, under the new CJRS rules People Group have covered the employment costs for all affected contractors again at considerable expense to the business.

People Group’s Legal Director Mark Clarke added:

“We have done everything we can to help contractors for the past 5 months, in advance of others and utilising our own funds ahead of government support. But with the changes due for September, it’s just not financially possible for us to continue to make CJRS payments.”

The final CJRS payment for affected contractors will be made on Friday 04 September 2020 for work completed week ending 28 August 2020.