The Chancellor Rishi Sunak has this evening (29 May) announced updates to both the Furlough Scheme and the Self Employment Income Support Scheme (SEISS) as follows:
Coronavirus Job Retention Scheme
The scheme as it stands i.e. the government paying 80% of employee’s wages up to a maximum of £2,500 per month will continue throughout June and July.
From 1 August the government will continue to pay 80% of employee’s wages and employers will only be asked to cover National Insurance and Employer Pension Contributions.
Starting in September the government’s contributions will gradually phase out with them paying 70% of employee’s wages and employers being asked to contribute 10% to ensure that staff continue to receive 80% of their salary.
In the final month of October, the government will contribute 60% of employee’s wages with employers contributing 20%.
The government have also put in place a flexible furlough scheme allowing employers to bring furloughed staff back on a part time basis from 1 July, a month earlier than originally planned.
For employers who want to place new employees on the current scheme, they will need to do so by 10 June to allow time to complete the minimum furlough period.
Self Employment Income Support Scheme (SEISS)
The SEISS has been extended to allow self-employed workers across the UK to access a second and final grant from the government in August. The grants paid out will be worth 70% of a self-employed person’s average monthly trading profits to cover three months’ worth of income with a cap of £6,750.