On Friday 29 May 2020, the Chancellor provided an update on the future of the Coronavirus Job Retention Scheme and the Self-Employment Income Support Scheme. The key details are included below:
Coronavirus Job Retention Scheme
- In June and July, there will be no employer contribution and the Government will continue paying 80% of furloughed people’s wages, up to £2,500 a month.
- From 1 July, flexibility will be introduced allowing for part time work.
- To introduce the new, flexible furlough, the current scheme will be closed to new entrants on 30 June. Employers wanting to place new employees on the scheme will need to do so by 10 June to allow time to complete the minimum furlough period before then.
- In August, the Government will pay 80% of furloughed people’s salaries, employers will be asked to pay National Insurance and pension contributions.
- In September, the Government will pay 70% of furloughed people’s salaries, with employers contributing 10%. Employers will also pay National Insurance and employer pension contributions.
- For the final payment in October, the Government will pay 60% of furloughed people’s salaries, with employers contributing 20%. Employers will also pay National Insurance and employer contributions.
Self-Employment Income Support Scheme
- The scheme has been extended for a further three months to August.
- Applications will open in August.
- The second grant will be paid out a single instalment covering three months’ worth of average monthly profits.
- The value of the final grant will be 70% up to a total of £6,750.
- The Chancellor said there will be no further extensions to the scheme.
More information can be found here.