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Chronicle Live
National
Emma Munbodh & Sean Seddon

Big furlough scheme changes on July 1 could see millions return to work this week

Changes to the furlough system this week will see many return to workplaces this week as the lockdown easing continues.

Employers who have had 80% of their wages subsidised by the Government will be able to return to work part-time from July 1.

In an alteration to the rules that will doubtless be utilised by hospitality businesses, employees will be able work some shifts and still have their wages covered when not working.

Pubs, restaurants, cinemas and many other businesses will be able to reopen for the first time since March this weekend.

From Wednesday, the furlough scheme will be closed to new applicants, meaning only those who have already completed three or more weeks on furlough will be able to continue on it, the Daily Mirror reports.

The three week rotation rule will also be axed, giving staff and businesses more flexibility as the economy picks up again.

The latest changes come ahead of plans to wind the scheme down from August, when employers will have to start making compulsory contributions for the first time since it was launched.

The government will continue to pay 80% of wages up to a cap of £2,500, as well as employer national insurance contributions and pension contributions for all furloughed hours in July.

However, from August 1, the level of grant will be reduced, with employers told to pay national insurance and pension contributions for all staff.

From September, the government's contrition will drop to 70% - up to a cap of £2,187.50 - for all workers on furlough.

Employers will be told to pay all additional contributions and top up employees’ wages to ensure they receive 80% - up to a cap of £2,500.

In October, this will then fall to 60% of wages up to a cap of £1,875 for the hours on furlough. Employers will have to top this amount up to the full 80%. The scheme will then close on October 31.

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