Furlough Update

Rishi Sunak has given the daily Government briefing and has provided an update on the #furlough scheme.

The current furlough scheme will close on 30 June and any employee who has not been furloughed before 10 June will not be able to complete the minimum furlough period of three weeks and so will not be eligible for furlough.

Employers will be able to continue to claim under the furlough scheme until the end of October with a stepped reduction in the Government contribution.

The current contribution of 80% will remain in place as it is for June and July with no employer contribution. From August the government contribution will remain at 80% but the employer will have to cover the cost of national insurance and pension contributions (approx 5% of employment costs).

From September, the government contribution will drop to 70% with the employer paying 10% and from October, the government contribution will drop to 60% with the employer paying 20%. After October, the scheme will close completely.

From 1st July, a flexible furlough scheme will be introduced that will allow employers to bring staff back for some days of each week. For any days worked, the employer will pay the normal wages and the furlough scheme will then cover the remaining days.

☑️ 10th June – Cut off day to furlough any employees
☑️ July – Furloughed staff will be able to work part-time in their old roles
☑️ August – Government will pay 80% (Cap at £2,500) but not NI and Pensions
☑️ September – Government will only pay 70% (Cap at £2,190), No NI and Pensions
☑️October – Government will only pay 60% (Cap at £1,875) ,No NI and Pensions and scheme will end.

SEIS Scheme
☑️ extended for one final time but with 70% and capped at £6,570 (Previously 80% and £7,500), claim needs to be made in August.

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