How to obtain the furlough for my nanny grant under the Corona Virus Job Retention scheme?

The COVID-19 pandemic has put many of us in difficult financial positions. To add to this stress many families are having to continue to pay for childcare at home even though they no longer require the help. Fortunately, the government announced on April 4th that families employing nannies will be eligible under the coronavirus job retention scheme to receive a grant.

Below we answer your questions about this scheme:

How do I furlough my nanny?

The process of furloughing your nanny requires some amount of admin with HMRC. Childcare Help can take care of this for you alternatively you follow the steps set out by HMRC here.

What if the nanny doesn’t want to be furloughed?

Redundancy is a last resort and you must follow the steps exactly set out by the HMRC to ensure your nanny has not to cause to claim unfair dismissal. You must provide a valid reason why you no longer need your nanny. This could be because your income has been diminished or because you are now working from home and can care for your children yourself.

If the nanny has been employed for two years and you have cause for dismissal the period of notice should be two weeks. You must have reasonable cause to dismiss your employee if they do have more than two years of service as they have more rights than a nanny employed for fewer than two years.

If your nanny has been in your employ for fewer than two years you can dismiss them with the notice under their contract. If there is no written contract in place the dismissal should come with one week’s notice.

If your nanny or childcarer refuses to be furloughed, depending on the circumstances, you could let them go or follow the steps set out by HMRC to make your nanny redundant. Alternatively, you could try to negotiate to work fewer hours with lower pay.

You must offer a redundancy pay off:

• 1.5 weeks’ pay for each full year of employment after their 41st birthday
• a week’s pay for each full year of employment after their 22nd birthday
• half a week’s pay for each full year of employment up to their 22nd birthday
• You must provide adequate time for your nanny to find alternative employment in the case of redundancy.

Whom does the Government pay me or my nanny?

You will first pay your nanny the furlough amount. Childcare Help will assist with calculating this amount. The government will pay in the following month reimburse you through a grant into your bank account.

When will nannies receive money from the government?

To ensure furlough you receive your nannies furlough payments the correct submissions must be made on time to HMRC. Should you not complete the correct forms and submissions payments will not be made to you by HMRC. Furlough payments for our nanny employer clients have been arriving promptly into their accounts within the month following each payment. Again we can assist with this administration process.

If nannies have two part-time jobs then can they receive two furloughs?

Parents and employers of nannies and childcarers with multiple part-time jobs can claim full furlough pay for their nanny. The nanny’s second employer may also request a grant through the furlough scheme to pay the same nanny or child carer. The nanny’s second employer may not wish to furlough them so s/he may continue working in another household.

If your nanny works in another household you may consider it unsafe for her to attend work in your home as s/he may be in contact with many different individuals in the other home, the travel to the two workplaces will also put your nanny in contact with multiple people which increases the risk of coming into contact with the coronavirus. This is another good reason to request your nanny accepts to be furloughed during the pandemic.

What if the furlough compensation doesn’t cover my nannies salary?

Full-time nannies earn more than this. If your nannies gross monthly salary is higher than £2500 you will have to negotiate with him or her to accept a salary reduction or you will have to pay the remaining amount to your nanny which is over and above the £2500 government grant.

If you would like further information on how to negotiate this with your nanny Childcare Help may be able to assist. The maximum gross monthly allowance from the government is £2500 which is approximately £420 per week or £1820 per month.

When the government furlough reduction comes into place can my nanny work fewer hours and I still receive the furlough grant?

Nannies and childcare will be able to return to work part-time and you as their employer will be required to contribute more to the salary. From August the furlough scheme will enable more flexibility. From August the furlough scheme will enable more flexibility.

While on furlough can my nanny get another job?

You may feel uncomfortable with your nanny returning to work immediately following being employed elsewhere due to the possible contact with COVID-19. Childcare Help can arrange COVID-19 testing should you require via a 3rd party partner.

Yes, your nanny can work for another employer whilst on furlough provided you agree to this and her or his contract allows for this. Their ongoing living costs such as rent may not be reduced and they may need to find alternative employment to complement their furlough salary. Taking another job whilst on furlough, a nanny must ensure they can return to your employment when you decide to bring them back. They must inform the 2nd employer and complete Statement C on the new starter checklist their employer provides them. It is important to consider that whilst on furlough if you have agreed with this with your nanny, your nanny or childcarer may not be earning their full salary.

Furloughing and annual leave of nannies:

Yes, you can require your nanny to take holiday during the furlough. Nannies will also accrue holiday pay during furlough. You must provide your nanny as much notice as the length of the holiday s/he will be required to take. For example, if the holiday period is two weeks you must give your nanny two weeks’ notice of this holiday. Please note – if a nanny takes annual leave during furlough you will have to compensate them 100% of their pay.

Can I still furlough if my nanny lives with me?

If your nanny still lives with you ideally they should move to another address during their furlough. If they have nowhere else to live then they can stay with you but they must not undertake any work for you. The consequences should you be reported to HMRC under such circumstances are severe.

How long can they remain furloughed?

The most recent policy as of May 14th, 2020 from the UK government states that your nanny or childcarer may remain on furlough until October however at the end of July the amount the government will reimburse you for the furlough payments to your nanny will be reduced. At this time the employer of the nanny will become responsible for a greater proportion of the furlough payments.

Am I eligible as an employer of a nanny to furlough my nanny?

On April 4th the Government announced nanny employers would be eligible for the furlough grant scheme or the Coronavirus Job Retention Scheme. This means if you would have otherwise decided to make your nanny or home-based childcarer redundant due to your employment, financial situation changing, or simply to protect your family or nanny from the spread of COVID-19, the Government will reimburse you either £2500 or up to 80% of your nannies salary including taxes and NI contributions, whichever is the lesser amount.