Added on: 29th May, 2020 by O1
Chancellor Rishi Sunak has unveiled detailed plans for employers to start paying towards their furloughed staff and extend reduced support to self-employed workers.
Changes to the Coronavirus Job Retention Scheme will enable businesses to bring back staff part time from July and introduce a taper requiring firms to contribute to their salaries from September onwards – a month later than expected.
In the face of growing calls, the Chancellor also announced at today’s Downing Street press conference that financial help would also be extended for sole traders for a further three months, although the grant available would be reduced by 10% to 70% of their profits and capped at £6,570.
The key changes to the furlough scheme are:
• In August, the taxpayer will continue to pay up to 80% of salaries (to a maximum of £2,500). However, employers will be required to pay National Insurance and pension contributions.
• From September, the taxpayer will continue to pay up to 70% of salaries (to a maximum of £2,190) with employers expected to contribute 10%
• In October, the taxpayer contribution will reduce to 60% with the employer contribution set at 20%
• From July, employers will also be able to bring back staff on a part-time basis
Finally, the Chancellor confirmed that at the end of October, the scheme will close for good. It will also be closed to new entrants from 30 June.
Announcing the latest measures, the Chancellor said: "These measures are on a scale unmatched by any government in recent history and will continue to be among the most generous in the world.
“Now our thoughts, energies and resources must turn to looking forward, planning for the recovery and we will need the dynamism of our whole economy as we fight our way back to prosperity.
"We will develop new measures to grow the economy, to back business, to boost skills and to help people thrive in the new post-COVID world.
"Today, a new national collective effort begins to reopen our country and kick-start our economy."
Full details of the announcement are available here.