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Insights

Furlough Scheme month by month overview

Posted on 03rd June 2020 in Employment, Coronavirus Pandemic

Posted by

Stephen Jennings

Partner and Solicitor
Furlough Scheme month by month overview

The government has published more information about upcoming changes to the furlough scheme. Here is a month by month summary of the changes:

  • June / July (no change): The government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance (ER NICS) and pension contributions. Employers are not required to pay anything.
  • August: The government will pay 80% of wages up to a cap of £2,500. Employers will pay ER NICs and pension contributions.
  • September: The government will pay 70% of wages up to a cap of £2,187.50. Employers will pay ER NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500.
  • October: The government will pay 60% of wages up to a cap of £1,875. Employers will pay ER NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500.
  • After that, the furlough scheme will end.

There is also further detail about flexibility and limitations on new entrants. From 1 July, employers can bring back to work employees who have previously been furloughed for any amount of time and any shift pattern, while still being able to claim under the furlough scheme for their normal hours not worked. When claiming under the furlough scheme for furloughed hours employers will need to report and claim for a minimum period of a week.

The scheme will close to new entrants from 30 June. From this point onwards, employers will only be able to furlough employees that they have furloughed for a full 3 week period prior to 30 June. This means that the final date by which an employer can furlough an employee for the first time will be 10 June, in order for the current 3 week furlough period to be completed by 30 June. Employers will have until 31 July to make any claims in respect of the period to 30 June.

Further guidance on flexible furloughing and how employers should calculate claims is expected on 12 June.

For the latest guidance on the furlough scheme and how we can support your business visit our dedicated support hub, or contact a member of our Employment Team directly.

 

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