Furlough Scheme set to reduce before ceasing at the end of October

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Whilst the furlough scheme is set to reduce it will also allow greater flexibility to bring employees back to work part-time from 1st July.

The furlough scheme will continue to operate in the same way it has done since its introduction until the end of July, but with the addition of allowing employees to return to work part-time and remain on the scheme from the 1st July.

An example of the way the scheme will support employees returning to work part-time was given by Chancellor Rishi Sunak as – where an employee works for 2 days a week the employer would pay the employee as they would normally, however for the other 3 days they would be covered by the furlough scheme.  However, as the part-time element of the scheme is only open to current furloughed workers, employers would have to add any new employees to the scheme by the 10th June.

From August Employers will no longer be able to claim the Employers National Insurance contribution and the 3% Pension Contribution that they have to pay on behalf of their employees.

In September the government contribution will drop from the current 80% to 70%.  Employers will have to contribute 10% to make up the difference so that the employee continues to receive 80%.

In October, the final stage of the scheme, employers will have to contribute 20% with the government contribution reducing to 60%.

At the end of October the scheme will come to an end.

If you would like help with any aspect of the scheme please don’t hesitate to contact us


About the Author:

Koreen is a Member in Practice of The Association of Accounting Technicians, which means that she is both licensed and regulated by the AAT. However Koreen is also a Fellow Member which is an acknowledgement by the AAT of her senior status in terms of knowledge and experience.
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