Changes to the Furlough Scheme
Blacks Bulletin: Employment Law
Changes to the Furlough Scheme
Since 1 September 2020, companies in the UK using the Government’s Coronavirus Job Retention Scheme (Scheme) now must contribute to the wages of any staff they continue to furlough.
Since March, Scheme has paid 80% of the wages of workers placed on furlough, up to a maximum of £2,500 a month. But now that grant has gone down to 70% , with the employer required to top up an additional 10% if they wish to keep staff furloughed and make a claim.
From 1 October the Government’s contribution will reduce to 60% of a furloughed employee’s wages with a cap of £1,875 and employers will be required to top up the additional 20%.
The Scheme is due to finish at the end of October and Chancellor Rishi Sunak has repeatedly ruled out an extension to it despite calls to keep it open for certain sectors that have been the hardest hit by lockdown, such as the travel industry.
Employers are still able to receive the furlough bonus whereby the Government will award employers a £1,000 bonus for each employee who is brought back to work who was furloughed and remains in employment between November and January.
If you have any questions about the changes to the Scheme please e-mail Paul Kelly at PKelly@LawBlacks.com