• 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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This article is prepared with the intention of providing general information on the changes in law. Philip Ross Solicitors accept no responsibility for errors it may contain and the coverage of the topic is not comprehensive. You are advised to speak directly to the writer or another partner within this firm with any specific enquiries on the topic addressed.