In the daily briefing the Chancellor, Rishi Sunak, announced plans to wind down the Government’s furlough scheme. The plan set out by the Chancellor aims to gradually end the furlough scheme by November.
In the June and July the scheme will continue and the tax payer contribution will stay at 80%.
In August, employers will be asked to pay national insurance and employer pension contributions – around 5% of the total employee cost – whilst the tax payer contribution remains at 80%.
In September, taxpayers will contribute 70% and employers be asked to pay 10% towards furloughing workers.
Finally, in October the taxpayer contribution will go down to 60% and the employer contribution will increase to 20%. The scheme will then end in November.
From July the flexible furlough scheme will be made available to employers. This will allow employers to retain workers part time, paying them for time worked, whilst the rest of their wage is made up through the furlough scheme. The deadline for applicants to the flexible furlough scheme will be June 10th.
The Government’s self-employment income scheme will be extended in the same fashion that it was implemented in March. The self-employed will receive a single instalment of three months of average profits, the final grant making up 70% of their average earnings.