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Furlough Scheme updates and changes (June 2020) ***Important information & submission deadlines included***
The Governments Furlough scheme and SEISS has given many businesses a lifeline and hope to be able to continue trading once the current pandemic passes. See below information on the next phase of both of these schemes...
Last week saw the Chancellors much awaited and anticipated announcement regarding the next round of changes to the Government’s furlough scheme. All furloughed employees will continue to receive a minimum of 80% pay (up to a max of £2500) at this present time however there will be incremental changes from August onwards as the country moves forward from lockdown into the phase of economic reopening.
See below the announced changes staged by month for June - October with regards to the the Government Contribution vs Employers Contribution and how this will evolve;-
June
80% (max £2500 pm)
+ NI + Pensions
July
Govt contribution
80% (max £2500 pm)
+ NI + Pensions
August
Govt contribution
80% (max £2500 pm)
NI + Pens
September
Govt Contribution
70% (max £2190 pm)
Employer Contribution
10% + NI + Pens
October
Govt Contribution
60% (max £1875 pm)
Employer Contribution
20% + NI + Pens
NEW – Flexible Furlough
A new flexible furlough scheme has also been announced and will be effective from 1st July. Employers will be able opt to return employees on a part-time basis and pay them for the hours worked, and then furlough them for the remainder of their working week and the rate of contribution for this is as above.
The furlough scheme will be closed to new entrants on 30th June so, in order to be eligible and have a minimum of 3 weeks on furlough, employees will need to be furloughed by 10th June at the very latest.
To meet these deadlines, you will need to review and implement your furlough strategy this week. Part-time furlough will work for many employers, however, there will, unfortunately, be some that will need to consider the redundancy option.
What should be the next steps for Employers?
*Review your HR strategy in the next week in line with the latest guidance and decide on the best solution for you;
*Furlough any employees by 10th June who you wish to continue on the new flexible furlough scheme as anyone furloughed after this date will not be eligible;
*Consider any other options including phased returns to work, reduction in working hours, linking staff contracts to performance of business, short-time working or sadly even possible redundancies.
Self Employed Income Support (SEISS) – UPDATE
The Self Employed Income Support Scheme (SEISS) has also seen changes to the original SEISS announced.
Eligible individuals can claim a 2nd final grant in August worth 70% of their average monthly trading.
The grant will cover 3 months’ profit capped at £6570.
Visit gov.uk to find out more or contact us if you require assistance with this.
If you require any help navigating your way through this all then please do get in touch, we are here to help.
Disclaimer: The information contained in this article is intended to be a guide and is not intended to be exhaustive. No action should be taken on the basis of information contained herein without obtaining the necessary advice. No responsibility can be accepted for loss or damages occasioned to any person acting or refraining from acting as a result of the material contained herein.
