June 2020 – Covid-19 Updates
The government has outlined its plan to bring the Coronavirus Job Retention and Self-Employment Income Support schemes to an end.
The Chancellor has confirmed that, in relation to the Job Retention Scheme
Between June and August 2020, the government will continue to pay 80 per cent of the wages of furloughed workers up to a monthly cap of £2,500, but from August employers will need to take on responsibility for the payment of employer national insurance and pension contributions
During September 2020, the government will only pay 70 per cent of wages, up to a cap of £2,187.50
During October 2020, the government will pay 60 per cent of wages up to a cap of £1,875
However, to ease the transition to the scheme being brought to an end, it was stated that, from 1 July 2020, employers will be given the flexibility to bring furloughed employees back part-time.
To enable the introduction of part-time furloughing and support those already furloughed back to work, claims from July onwards will be restricted to employers currently using the scheme and previously furloughed employees. In the case of part-time working, the furlough payment will be made in respect of hours not worked and the monthly cap will be proportional to hours not worked.
Self-Employment Income Support Scheme - is also to be brought to an end. Those eligible will be able to claim a final grant in August 2020, worth 70 per cent of their average monthly trading profits, paid out in a single instalment covering three months worth of profits and capped at £6,570 in total.
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