Last Friday Chancellor Rishi Sunak has introduced some changes to Coronavirus Job Retention Scheme (CJRS) and announced a further extension of the Self-Employment Income Support Scheme (SEISS). As Britain moves into the first stage of easing the lockdown, these adjustments may reflect the governments’ perception and expected timeline in regards to UK businesses getting back to normality.
As we reopen the economy, there is broad consensus across the political and economic spectrum, the furlough scheme cannot continue indefinitely.
— Chancellor Rishi Sunak
Here are the main changes employers need to be aware of
From 1st July, employers could bring back furlough workers for any amount of time or shift pattern and will be required to pay the workers salary for their in-work hours. Employers would be able to continue and claim back out of work, furlough hours, for a minimum period of a week.
Nothing really changes for June and July, as the government will continue to pay 80% of wages up to £2,500, as well as employer National Insurance and pension contributions.
From August, businesses will gradually start sharing the salary costs of a furloughed employee. This amount would gradually increase until October when the government support scheme is expected to be paused.
The full breakdown of future monthly payments for employers
|Month||Government Pay||Employers Pay|
|August||80% of salary up to £2,500||NIC and pension contributions|
|September||70% of salary up to £2,187||NIC and pension contributions along with 10% of the employee’s salary.|
|October||60% of salary up to £1,875||NIC and pension contributions along with 20% of the employee’s salary.|
The Furlough Scheme Closing Date
Chancellor Sunak has also announced that the Furlough Scheme will not receive new entrants beyond 30th June. By this date, employers will be able to apply for furloughed employees, only if the worker has been furloughed for three weeks before 30th June.
Self-Employment Income Support Scheme (SEISS)
SEISS will be extended while the grant’s amount has been reduced from 80% to 70% of the business’s average monthly trading profits; however, eligible businesses will be able to apply for a second grant in August, of up to £6,570.
The application deadline for the first £7,500 is 13th July.