UK to require employers to pay 20-30% of furloughed wage cost

Marco Green
May 25, 2020

The Times has reported that authorities in the United Kingdom are eager to require employers to cover from 20 to 30 percent of furloughed employees' wages starting in August to aid the country's economic burden amid the pandemic.

The Treasury will be asking businesses to cover 20% to 30% of people's wages in the job retention scheme, according to a report in The Times.

And small business owners will also have to pick up the cost of national insurance contributions on top, on average 5 per cent of wages, says the Times.

Rishi Sunak is expected to announce the changes next week. The furlough scheme - which pays 80 per cent of a worker's salary up to a £2,500 monthly cap - now supports around 7.5 million jobs, with Mr Sunak saying earlier this month he was preparing to "wean" workers and business off the programme amid concerns that the nation was becoming "addicted" to it. It now supports 7.5 million United Kingdom jobs but the chancellor said earlier this month that he was preparing to "wean" employees and business off the programme before the nation became "addicted" to it.

The UK is struggling with an economic crisis and the finance minister, Rishi Sunak, stated last week that the country has been badly hit by the nationwide lockdown, and a lot of people may lose their jobs in the coming weeks, or months.

Other reports by Click Lancashire

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