Changes to the furlough scheme announced last Friday

These changes include:

  • The scheme effectively closing to newly furloughed staff from 10th
  • From 1stJuly (rather than 1st August), a "flexible" furlough will allow businesses to bring staff back part-time.
  • From August, employers will be asked to pay National Insurance and Pension contributions but with the Government still covering the full 80% of furloughed staff’s salary.  In September, the Government’s contribution will reduce to 70% with the employer expected to pay a contribution of 10%; in October, the employer’s contribution increases to 20%.

The furlough wage cap will decrease each month and the scheme will close on 31st October.  Further guidance is to be published on 12th June.

More detail on the changes to the SEISS and the furlough scheme can be found by clicking the link below