Friday 29 May 2020

Major changes to the furlough scheme

In a further annoucement this evening, the Chancellor has confirmed a number of changes to the furlough scheme. 

In June and July the furlough scheme will continue as before. However from August, employers will be asked to cover National Insurance and employer pension contributions.

From September, employers will pay 10% of wages for furloughed staff, and then in October 20%.

The Government is also introducing a more flexible furlough scheme in July, with the ability to bring back employees on a part-time basis, whilst remaining on the furlough scheme. 

To summarise the furlough changes: 

- June & July - no employer contribution.
- Aug - employers pay NI and pension contributions.
- Sept - government pays 70% and employers pay 10% of wages.
- Oct - government pays 60% and employers pay 20% of wages.

The furlough scheme will then close at the end of October 2020.

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