Rishi Sunak announced this evening (29 May 2020) changes to the Coronavirus Job Retention Scheme, with businesses starting to share the cost of furloughing staff from August 2020 onwards.
- August: small businesses will be required to cover employer national insurance and employer pension contributions of staff on the Coronavirus Job Retention Scheme.
- September: businesses will have to cover 10 per cent of the wage costs of furloughed workers on top of NI and pension contributions.
- October: businesses will have to cover 20 per cent of furloughed workers wage costs plus NI and pension contributions.
Also, as anticipated, from 1st July 2020, furloughed employees can return to work part time, the government will cover 80% of the salaries for the days the employees are furloughed the employer will pay 100% of the costs when the employees are working. To ensure the system is not abused, from 1st July onwards, new entrants will not be allowed into the furlough scheme.
Employees who were furloughed in the three week period up to 30 June 2020 will be allowed to continue to claim furlough from July onwards
Self-employed scheme extended again
The chancellor also announced that the parallel support scheme for self-employed small business owners running alongside furlough will be extended for a second three months.
The “second and final” grant will be worth 70 per cent of average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £6,570 in total. This will be available in August 2020.