Chancellor confirms details of new flexible furlough scheme

Latest as Rishi Sunak confirms tapering of furlough scheme

Chancellor confirms details of new flexible furlough scheme
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A new flexible furlough scheme will be introduced from 1 July, replacing the current job retention scheme to give employers “maximum flexibility” to decide to bring back employees for a number of days per week.

Speaking at the government’s press briefing today (29 May), Chancellor Rishi Sunak said the scheme will continue as before in June and July, with no employer contribution.

Furloughed staff will be able to work part-time in their old roles from July, with employers deciding the hours their employees will work on their return.

In August, the taxpayer contribution will remain at 80 per cent but employers will be asked to pay national insurance and employer pension contributions.

By September, employers ten per cent towards the wages of furloughed staff, with 70 per cent covered by taxpayers.

In October, employers will pay 20 per cent, with taxpayers pay 60 per cent.

The scheme will then close.

Related: What ‘Test and Trace’ means for independent garages

Speaking earlier this month, Stuart James, chief executive of the IGA said: “We thank the Chancellor for listening to the IGA’s proposal to implement a flexible furlough scheme. 

“As highlighted in our letter, many independent garages have suspended activity since the coronavirus crisis escalated due to the decrease in work volumes caused by lockdown restrictions and the MOT extension. 

“This support from the government will help independent garages with a gradual, stable approach when reopening.”

Self-employed workers

Rishi Sunak has also announced that self-employed will be able to access a second lump sum of cash from the government to cover lost income while the country is in lockdown.

The grants paid out by the self-employment income support scheme (SEISS) will be worth 70 per cent of a self-employed person’s average monthly trading profits to cover three months’ worth of income, capped at £6,570.

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