Furlough Scheme Changes
Here are some of the coming changes to the Furlough Scheme.
The key points for employers
• 10 June 2020 will be the last day that employers can place employees on furlough.
• from 1 July, 'flexible furlough' is being introduced, meaning employees will be able to work part- time and be furloughed part-time. Businesses will decide how that will work (in terms of the time split)
• from 1 August, employers will have to pay employee's national insurance contributions and pension contributions, and can no longer reclaim them through the CJRS.
• from 1 September, the government will only reimburse 70% of salary (up to a maximum of £2,190). Employers are required to top-up to 80% (or more, depending on what the employer agreed with the employee)
• from 1 October, the government will only reimburse 60% of salary (up to a maximum of £1,875), and employers will continue having to top up to 80% (or more).
• the furlough scheme will close on 31 October 2020.
Also announced - the self-employed grant is being extended, with applications opening in August for a second and final grant. There will be parity with the reducing furlough scheme, paying 70% (not 80%) of average earnings up to £6,750.
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