Businesses have been able to bring furloughed employees back into the workplace on a part time basis this week.
As of 1st July, employers were given the flexibility to decide the hours and shift patterns of their employees as part of the government’s plan to kick start the economy.
Employees will still receive 80% of salaries for the hours they do not work from government.
The Coronavirus Job Retention Scheme has to date helped protect more than 9.3 million jobs throughout the pandemic, with employers claiming more than £25.5 billion to support wages.
The scheme will remain open until the end of October in order to support people to get back to work.
Chancellor of the Exchequer Rishi Sunak said:
“Our number one priority has always been to protect jobs and businesses through this outbreak. The furlough scheme, which will have been open for eight months by October, has been a lifeline for millions of people and as our economy reopens we want that support to continue.
“Giving firms the flexibility to bring back furloughed workers on a part-time basis will help them work gradually and help them plan for the months ahead.
“From August, the level of government grant provided through the job retention scheme will be slowly tapered to reflect that people will be returning to work. Businesses will be asked to contribute a modest share, but crucially individuals will continue to receive that 80% of salary covering the time they are unable to work.”
Here are the changes that will be made in the next few months:
From August, workers will continue to receive 80% of their wages, up to a cap of £2,500 per month, for the hours an employee is on furlough, but their employer will have to pay the additional contributions, including National Insurance and pensions.
From September, government contributions will drop to 70% of staff wages, up to a cap of £2,187.50 per month, for the hours an employee is on furlough. Employers will pay the difference to bring the payment up to 80%.
From October, government contribution will drop further to 60%, up to a cap of £1,875 per month, for the hours an employee is on furlough. Employers will then pay the difference so that workers still receive the full 80% of their wage.
On 31st October, the furlough scheme will come to an end.
More information about the changes can be found on the Gov.co.uk website.