Furlough scheme end date confirmed as Rishi Sunak announces big changes

Marco Green
May 30, 2020

Mr Sunak also warned businesses that they must begin to bear the cost of the Coronavirus Job Retention Scheme from August.

"I believe it is right in the final phase of this eight month scheme to ask employers to contribute alongside the taxpayer towards the wages of their staff- but pay only a modest contribution introduced slowly over the coming months".

Employers have furloughed 8.4 million workers and claimed up to 80% of their wages, to a maximum £2,500 a month.

There are now 8.4m people being paid through the state through the furlough scheme, along with another 2m receiving support through the separate self-employed scheme.

Mr Sunak said: "In June and July, this scheme will continue as before, with no employer contribution at all". In this month, the Government subsidy will be 70 percent, with employers contributing 10 percent. Employers will also be expected to pay national insurance contributions, which they are now exempt from, and employer pension contributions.

A group of MPs - including representatives from Tower Hamlets, Barking and Dagenham, Redbridge and Havering - have called upon chancellor Rishi Sunak to extend the self-employment income support scheme which is due to end this weekend.

The Office for Budget Responsibility, the government's independent economic forecaster, has forecast that the overall bill for the government's jobs subsidy schemes could hit £80bn, pushing the overall cost of fighting the coronavirus outbreak to more than £300bn.

Other reports by Click Lancashire

Discuss This Article