Key points announced this evening regarding flexible furlough and employer contributions:
1) Employers will be required to contribute to furlough from August, including:- – August employers to contribute NI and pension costs (gov imagepaying 80% up to £2500 cap) – September employers to also contribute 10% and gov to contribute 70% up to £2187.50 (so employee receives 80% with £2500 cap) – October employers to contribute 20% and gov to contribute 60% up to £1875 cap (so employee still gets 80% with £2500 cap)
2) From 1st July, employers can bring people back part-time, so for example they could work 2 days (and paid as normal by employer) and be furloughed for 3 days (paid as above). These flexible arrangements are starting a month earlier than originally stated.
3) The original furlough scheme and new flexible furlough scheme cannot run concurrently. The furlough scheme is closing to new entrants at the end of June, so employees must be furloughed under the current arrangements by 10th June so they have had 3 weeks of furlough leave before the original arrangements cease. This is important for any employers wishing to make use of the flexible arrangements from July onwards.
The Job Retention Scheme will end after 8 months at the end of October having been used for over 1m jobs.