First details of how businesses will share cost of furloughed workers announced.

• Rishi Sunak has announced updated details of the furlough scheme, including how employers will share the cost of the wages of furloughed workers with the government.
• From July, the furlough scheme may only be used by employers already using the scheme and by previously  furloughed employees.
• New entrants will have a last opportunity to enter the scheme on 10 June.
• The furlough scheme will close entirely on 31 October.
• For the rest of June and July, the government will pay 80% of furloughed wages, capped at £2,500, as well as employer national insurance (ER NICs) and pension contributions.
• The 80% pay contributed by the government will continue into August, but employers will be expected to pay ER NICs and pension contributions.
• From September, the government will reduce their contribution to 70% of furloughed wages, with a cap at £2,187.50. Employers will be expected to pay ER NICs and pension contributions and 10% of wages to make up the 80% total up to a cap of £2,500.
• The government contribution will be reduced further in October to 60% of wages up to a cap of £1,875. Employers will continue to pay ER NICs and pension contributions alongside 20% of wages to make up the 80% total up to the cap of £2,500.
• Those undertaking part-time work under furlough will be allowed to do so from 1 July, instead of 1 August as previously announced. This is only applicable to those in the full-time furlough scheme.
• Sunak also announced an extension to the Self-Employment Income Support Scheme. Those eligible will be able to claim a second and final grant capped at £6,570.
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Georgina is a solicitor with nearly 30 years of experience in advising substantial businesses on complex legal issues and providing strategic and commercial solutions.