At Friday 29 June’s 5pm press conference, the Chancellor Rishi Sunak announced that from August employers will have to start to share the cost of the Coronavirus Job Retention Scheme and he confirmed that he will extend the Self Employed Income Support Scheme to August.
Coronavirus Job Retention Scheme Employer Contributions
During June and July, the government will continue to pay for 80% of workers’ salaries up to £2,500 per month.
From August, employers will be asked to pay National Insurance and pension contributions for all employees who are currently furloughed. From September employers will need to pay 10% of salary costs which will then be increased to 20% for October, the last month the scheme will run for.
The Chancellor additionally confirmed that from July, furloughed employees will be able to return to work part-time under a ‘flexible furlough’ arrangement; employers will be asked to cover their wages for the hours they work.
The scheme which launched in May now covers more than 8.4 million UK workers.
Self-Employed Income Support Scheme extension
The Chancellor confirmed a second and final grant would be made available on the Self-Employment income Support Scheme in August. The scheme was due to expire this coming Sunday. The grant is worth 70% of the individual’s average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £6,570.
To read the story in full and to find out more about both schemes, please visit the Government website.