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Manchester Evening News
Manchester Evening News
National
Rachel Pugh

Martin Lewis' vital warning to anybody on furlough in the UK

Money Saving Expert Martin Lewis has issued some important advice to anybody who is currently claiming furlough.

Martin says the government scheme is set to change this weekend, and people need to be aware of what's happening, as a 'less generous' scheme comes into place.

Writing in the latest MoneySavingExpert.com newsletter, the finance journalist explained: "If you're paid via the Government's Covid-19 income support schemes, they're about to change significantly. The Job Retention Scheme - often called furlough - officially ends on Sat, to be succeeded on Sun by the less generous Job Support Scheme.

"This runs for 6mths for employees on the payroll on 23 Sep, and is split into 2 parts depending on whether or not a business must close due to lockdown. Meanwhile, the next period covered by the Self-Employment Income Support Scheme grant starts on Sun.

He continued: "To complicate matters, the Government last week rewrote how they will work."

Martin Lewis issues urgent warning as payment holiday deadline looms

Martin then went on to outline the key things anybody affected by the changes needs to know.

He explained how if you're employed by a that's business still open you'll need to work at least 20% of your hours to be eligible for anything under 'Job Support Scheme Open'.

Martin says: "This is different from the original furlough scheme, under which you weren't allowed to work at all. Now you must work at least 20% of normal hours (originally 33% before last week's change).   If you hit that minimum you'll get 73% of your normal wage, up to a cap - but the more you work, the more you get.

"Your employer will pay you as normal for hours you work. Your employer pays 5% and the state 62% of your remaining wage, with the state's part capped at £1,542/mth. Then you lose the rest."

If you're employed by a business forced to close due to lockdown, you should get 67% of your wage from the state under 'Job Support Scheme Closed' .

Martin says this is a new element to help businesses, branches or departments instructed to close, but it won't cover those that choose to close themselves. That 67% is capped at £2,083/mth, while your employer must cover pension and national insurance but it doesn't have to pay any wages.

You can find full information on the changes and more in-depth advice from Martin Lewis on the weekly MoneySavingExpert newsletter.

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