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coronavirus

Furlough scheme to end in October

Chancellor Rishi Sunak announced that the furlough scheme will end in October — eight months after it was introduced.

The furlough scheme will terminate at the end of October, UK Chancellor Rishi Sunak announced yesterday.

The scheme, brought in as the UK went into lockdown, sees the UK Government pay 80 per cent of salaries — up to £2,500 a month.

Some 8.4 million people have been supported.

Greater flexibility of the furlough scheme will begin from next month.

From July 1, businesses will be given the flexibility to bring furloughed employees back part time.

Individual firms will decide the hours and shift patterns their employees will work on their return, so that they can decide on the best approach for them — and will be responsible for paying 100 per cent of their wages while in work.

In June and July, the government will continue to pay 80 per cent of salaries, but from August, the scheme will be slowly tapered to reflect that people will be returning to work.

From August, employers will pay employer national insurance contributions and pension contributions.

In September, they will cover 10 per cent of wages, and in October, 20 per cent.

The Self-Employment Income Support Scheme will be extended — with those eligible able to claim a second and final grant in August capped at £6,570.

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