Coronavirus Job Retention Update
Government outlines plan to bring Coronavirus Job Retention and Self-Employment Income Support schemes to an end
The government has outlined its plan to bring the Coronavirus Job Retention and Self-Employment In-come Support schemes to an end.
In relation to the Job Retention Scheme:
- between June and August 2020, the government will continue to pay 80 per cent of the wages of furloughed workers up to a monthly cap of £2,500, but from August employers will need to take on responsi-bility for the payment of employer national insurance and pension contributions;
- during September 2020, the government will only pay 70 per cent of wages, up to a cap of £2,187.50;
- during October 2020, the government will pay 60 per cent of wages up to a cap of £1,875.
However, to ease the transition to the scheme then being brought to an end, from 1 July 2020, employers will be given the flexibility to bring furloughed employees back part-time.
NB - to enable the introduction of part-time furloughing, and support those already furloughed back to work, claims from July onward will be restricted to employers currently using the scheme and previously furloughed employees. In the case of part-time working, the furlough payment will be made in respect of hours not worked, and the monthly cap will be proportional to hours not worked.
Those eligible for the Self-Employment Income Support Scheme will be able to claim a final grant in August 2020, worth 70 per cent of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits and capped at £6,570 in total.
For more information see Chancellor extends Self-Employment Support Scheme and confirms furlough next steps from gov.uk
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