Chancellor outlines future of Coronavirus Job Retention Scheme

David Lee

Chancellor outlines future of Coronavirus Job Retention Scheme

The Chancellor has outlined how much employers will be expected to pay towards the wages of their furloughed employees over the coming months.

The Government’s Coronavirus Job Retention Scheme is set to run until the end of October.

But contributions from the taxpayer will be scaled back during that time, MP Rishi Sunak confirmed at a press conference today.

The contributions required from employers are as follows:

  • June/July – Coronavirus Job Retention Scheme continues as normal, no employer contribution required
  • August – Employers asked to pay National Insurance (NI) and pension contributions, on average five per cent of employment costs
  • September – Employers pay 10 per cent of furloughed staff wages, with taxpayer paying 70 per cent
  • October – Employers pay 20 per cent of furloughed staff wages, with taxpayer paying 60 per cent

The self-employed income support scheme is set to continue, with applications for a second grant opening in August.

A single payment will be made covering three months of average monthly profits up to £6570.

A flexible furlough scheme will be introduced from July 1 which will give employers the chance to bring staff back part-time, with companies picking up the cost for the days their staff work.

Mr Sunak said: “The financial security of the furlough scheme has been a relief for many but at the same time, people want to work.

“Nobody wants to be at home on furlough, nobody wants to feel unable to contribute.”

 

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