Furlough scheme extended
I spoke with the Chancellor earlier this week and I’m delighted he has today announced he has extended the Coronavirus Job Retention Scheme (Furlough). Here’s what you need to know.
1. The scheme has been extended until October, with June and July providing no employer contribution whatsoever, the Government will pay 80% of people’s wages up to £2,500 a month.
2. In August, the Government will still fund 80% of wages, but will ask employers to fund NI contributions and pensions for employees on furlough
3. In September, employers will be asked to cover 10% towards people’s salaries, whilst the Government covers the other 70%
4. In October, the Government will then fund 60% of salaries, with employers being asked to cover 20%, before the scheme comes to a close in November.
5. From July 1st, employers can now apply for flexible furlough, which means that employees could work 2 days a week, for example, where applicable, and the Government’s furlough scheme would cover the rest.
6. To introduce the new flexible furlough from July 1st, the old scheme will be closed to new entrants on June 30th. Employers wanting to place new employees on the scheme will need to do so by June 10th, to allow time to complete the minimum furlough period before then.
7. The Government has also confirmed an extension to the Self-Employed Income Support Scheme, for a further three months.
8. Applications for this will open up in August, with one lump sump to be paid to cover 3 months’ worth of average monthly profits by 70%, up to a total £6,570.
Got any questions or issues? Get in touch with me at Jamie.Wallis.MP@Parliament.uk