Chancellor unveils details of furlough scheme changes
By Rob Freeman | 29th May 2020
Chancellor Rishi Sunak has unveiled how the Government's furlough scheme will be tapered off as the coronavirus restrictions are relaxed.
The Job Retention Scheme has seen furloughed staff paid 80 per cent of their wages despite being unable to work and has been extended from the initial finish at the end of June to October 31.
Ruling out any further extension, the Chancellor has introduced a phased programme which will see employers gradually pay more of furloughed workers pages.
And workers will be able to return to work part-time from July 1 - a month earlier than previously announced - with the furlough scheme paying a percentage of their remaining hours.
In August, businesses will be expected to pay National Insurance and pension contributions for furloughed staff.
That will increase from September with the government contribution dropping to 70 per cent of salaries (up to £2,190) and 60 per cent in October (capped at £1,875) with employers making up the balance to 80 per cent of full salaries.
Self-employed workers will be able to access a second lump sum of cash from the government to cover lost income while the country is in lockdown.
The grants paid out by the Self-Employment Income Support Scheme (SEISS) will be worth 70 per cent of a self-employed person's average monthly trading profits to cover three months' worth of income.
They are capped at £6,570.
The Chancellor said: "As Britain returns to work we need to adapt the emergency programmes we put in place to survive this crisis."
"I believe it has made a real difference. But as we reopen the economy, the furlough scheme cannot remain indefinitely."
Copyright 2020 Moose Partnership Ltd. All rights reserved. Reproduction of any content is strictly forbidden without prior permission.