Chancellor of the Exchequer Rishi Sunak, has this evening, Friday 29th July, announced that the furlough scheme will now become flexible, helping businesses to bring back some of those employees that they placed on the job retention scheme.
All of this is with the aim of helping the UK economy bounce back after the corona virus pandemic.
There has been talks in recent weeks about what steps would be taken with regards to furlough, as approximately 8million people wait to get back to work.
People on furlough will still receive 80% of their wages from the Government coffers in June and July.
However, from August employers would have to contribute a “modest amount”, approximately 5% which could cover pensions and national insurance.
From September the Government will cover only 70% of salaries, to a cap of £2,190 and from October it will pay 60%, to a cap of £1,875.
By October, employers are set to pay 20% towards those employee salaries who are furloughed, to top up the amount paid by the Government.
The Chancellor also revealed the flexibility part of the scheme, mentioning that employers could bring people back on a part time bases, from July, meaning that business pay for the days the employee works, and the furlough scheme picks up the rest.
