Chancellor prepares to announce furlough changes
By Rob Freeman | 29th May 2020
Employers will be expected to pay 20 per cent of furloughed workers' wages as the Government begins to roll back its coronavirus support schemes.
Chancellor Rishi Sunak is expected to announce the move in the next few days with employers also asked to pay National Insurance and pension contributions.
The Chancellor has extended the Job Retention Scheme by four months until the end of October, but warned he would need to cut the proportion of salaries, currently 80 per cent, from August.
Around 8.4 million workers have been placed on furlough since the scheme was introduced in March with the cost to the Government placed at £15billion.
A separate scheme to support self-employed workers has cost close to £7billion.
The Institute of Directors has warned a quarter of its members who have taken advantage of the scheme would struggle to pay a share of the costs.
And the hospitality industry has called on the Chancellor to exempt them from paying a share as they will be among the last businesses to resume trading normally.
They have also called on him to allow staff on furlough to return to work on a part-time basis.
BBPA chief executive Emma McClarkin said: "Pubs have been closed since March with no income. Expecting many to contribute to furlough costs while they are still closed is madness.
"The decision for the Chancellor is simple, extend the furlough scheme at 80 per cent for our sector until October to save hundreds of thousands of jobs."
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