On Thursday, Rishi Sunak confirmed that the UK Treasury will fund furlough wage payments if Nicola Sturgeon puts Scotland into stricter lockdowns this winter.
In a major U-turn the Chancellor said that the furlough scheme can be extended across the whole UK or parts of it until next March - if needed.
The announcement paves the way for Scotland’s First Minister to move the country into lockdown with Treasury cash available to cover the wages of workers whose places of employment are forced to close.
And in the latest edition of The Martin Lewis Money Show Live, the financial expert explained exactly what the extension means for workers on all types of contracts and the self-employed.
Martin said: “The UK Government’s Job Retention Scheme is where employees with no work, or who can’t work, will get 80% of their salary covered by the State up to a maximum of £2,500 a month.”
The consumer champion went on to explain how part-time furlough is allowed.
“Let’s say you could go to work for half your normal hours, for the half you’re not working, the State would cover it, for the time you’re working your employer should give you full salary,” he said.
Martin added: “Anybody can be furloughed, even if you’ve not been furloughed before, even if your firm hasn’t done furlough before, as long as you were on the payroll before Saturday, October 31.”
But Martin issued a warning to all employees watching the show.
“Furlough is totally your employers’ choice,” he told viewers.
Martin said many people have asked him if they can make their employer put them on furlough, but he confirmed they can’t - the decision lies entirely with the employer.
He also had good news for anyone that recently lost their job.
“Re-hire and furlough is allowed for those that have been made redundant or left, maybe to go to another job that fell through, provided they were on the payroll between March 20, 2020 and September 23, 2020.”
Martin also confirmed that if you’re on a fixed-term contract or a zero hours contract, you can be furloughed at your employers discretion.
The founder of MoneySavingExpert.com went on to explain the changes to the Self-Employment Income Support Scheme grant (SEISS).
The third SEISS grant has been increased to 80% 0f trading profits up to a maximum of £7,500.
Martin said: “When it was first announced they [UK Government] were going to do this in September it was 20%, two weeks ago it was increased to 40%, then on Saturday the Prime Minister said you’ll get 80% in November and 40% the other two months which means you get 55%.
“And they’ve upped it again to match furlough, so it’s 80% of profits for November, December and January up to a maximum of £7,500.”
Martin confirmed applications for the third SEISS grant will open on November 30.
But he also wanted that “not all the self-employed qualify for this.”
He said: “There has been no change to eligibility criteria so those, the possibly millions, who have been excluded - you’re still excluded, I’m afraid.”
If you are eligible for the third SEISS grant, because you were eligible for one of the first two grants, you must now declare you intend to continue to trade and either Covid has reduced your demand or Covid means you temporarily can’t trade.
Find out more about the SEISS grant on the GOV.UK website here.
