You are here: Home - Household Bills - News -

Changes to furlough scheme expected this week

0
Written by: Emma Lunn
27/05/2020
The Government is planning changes to the furlough scheme which could stop companies from furloughing any more staff.

Chancellor Rishi Sunak is thought to be poised to announce a cut-off date of the end of July after which companies won’t be able to add staff to the Coronavirus Job Retention scheme.

Sunak is also likely to provide details about how employers will be expected to share the costs of the scheme.

Firms may have to start paying about 20% of furloughed workers’ wages, plus National Insurance contributions. All firms using the Coronavirus Job Retention scheme will be required to make the payments, even if they remain closed.

However, the announcement is also likely to include a rule change which allows businesses to bring back staff part-time.

Under the government’s Coronavirus Job Retention Scheme, employers can keep staff on their payroll even if they can’t work because of coronavirus, with the Government paying 80% of their salary, up to a monthly maximum of £2,500.

The scheme opened on 20 April with almost a quarter of UK workers furloughed by their employers within the first two weeks of the scheme’s launch.

The scheme was initially due to end on 31 May but was later extended until the end of June. It was then extended by an additional four months until the end of October, although funding will be reduced from July.

The Office for Budget Responsibility says the scheme could cost up to £80bn.

 

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Autumn Statement: Everything you need to know at a glance

Yesterday Chancellor Jeremy Hunt made his first fiscal statement in the role, outlining a range of tax measure...

End of Help to Buy: 10 alternatives for first-time buyers

The deadline for Help to Buy Equity Loan applications passed on 31 October. If you’re a first-time buyer who...

Moving to an energy prepayment meter: Everything you need to know

As households struggle with the soaring cost of energy, tens of thousands of billpayers are expected to move o...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week