Recalculating Furlough

sam722

I work in a zero-hour contract job in a restaurant in Liverpool. Before the first lockdown I was a student and working part-time, as such I received part-time furlough. However, upon returning to work in July, I was no longer a student and thus began working full time hours, equalling up to 50 hours a week. However, my current furlough is still based off the part-time hours. As I am no longer a student, I have no support to pay my bills and my financial situation has changed dramatically. I receive £449 per month on furlough,the same as what I received in the first lockdown despite being a full time worker. This is not enough to live off, it does not even cover my rent, let alone other costs of living. My employer is refusing to recalculate my furlough pay, even though it does not reflect the fact that I now work full time.

To add a nail to the coffin, the minimum wage was increased in 2020, with my hourly rate going up to £8.20 from 1st April 2020, however, furlough calculations do not reflect this increase and I receive furlough based on the previous, lower, hourly rate. However, people employed by the company after the first lockdown are getting payed furlough based off the new minimum wage.

Do I have any legal backing in saying that my furlough should be recalculated? I have tried contacting Citizens advice, ACAS, and am now on hold to HMRC but nobody seems able to help. The best I have got is being recommended to a foodbank which isn't really a solution, so any advice would be appreciated!

Jeremy535897

Furlough is based on pay before the NMW increase, if you were on the payroll at 19 March 2020. When you are furloughed, NMW rates don't apply, because you are not working.

MattMattMattUK

sam722 said:

I work in a zero-hour contract job in a restaurant in Liverpool. Before the first lockdown I was a student and working part-time, as such I received part-time furlough. However, upon returning to work in July, I was no longer a student and thus began working full time hours, equalling up to 50 hours a week. However, my current furlough is still based off the part-time hours. As I am no longer a student, I have no support to pay my bills and my financial situation has changed dramatically. I receive £449 per month on furlough,the same as what I received in the first lockdown despite being a full time worker. This is not enough to live off, it does not even cover my rent, let alone other costs of living. My employer is refusing to recalculate my furlough pay, even though it does not reflect the fact that I now work full time.

They are not allowed to recalculate your furlough pay, they have to follow the original reference period. 

sam722 said:

To add a nail to the coffin, the minimum wage was increased in 2020, with my hourly rate going up to £8.20 from 1st April 2020, however, furlough calculations do not reflect this increase and I receive furlough based on the previous, lower, hourly rate. However, people employed by the company after the first lockdown are getting payed furlough based off the new minimum wage.

This is correct as per the rules of CJRS, they can not claim more for you.

sam722 said:

Do I have any legal backing in saying that my furlough should be recalculated? I have tried contacting Citizens advice, ACAS, and am now on hold to HMRC but nobody seems able to help. The best I have got is being recommended to a foodbank which isn't really a solution, so any advice would be appreciated!

No, you do not, your employer is implementing your furlough and CJRS correctly.

Have you looked to claiming UC and any other benefits you may be entitled to? You can run your circumstances through a benefit calculator to see if you are entitled to anything based on your circumstances. Based on statements in your first paragraph I would be surprised if you were not entitled to something.
https://www.entitledto.co.uk/

Also whilst I know it is not the easiest option, have you looked at alternative employment? Where I am the supermarkets are still recruiting and you are allowed to work an alternate job whilst on furlough, so that could also be an additional source of income. 

poppy12345

It would be Universal Credit you need to look at claiming. If you have savings/capital of more than £16,000 you're exlcuded from claiming. If you live with a partner you claim as a couple. If you're privately renting and you're under 35 you'll be entitled to the shared rate of local housing allowance as part of your UC maximum entitlement.

Any earnings received during your monthly assessment period will reduce your UC by 63%. (furlough is earnings)