Chancellor Rishi Sunak has outlined the next steps for furloughed workers across the country as he also confirms that the government’s Self-Employment Income Support Scheme will be extended.
Aiming to give more security to individuals whose livelihoods are adversely affected by coronavirus in the coming months, those eligible for self-employment support will be able to claim a second and final grant capped at £6,570.
This announcement came alongside flexibility to bring furloughed employees back part time in July, while requiring employers to contribute to furloughed salaries from August.
So far, the Job Retention Scheme has helped 1 million employers across the UK furlough 8.4m jobs.
The new announcement means that from July 1, businesses will be given the flexibility to bring furloughed employees back part time.
This is a month earlier than previously announced to help support people back to work. Individual firms will decide the hours and shift patterns their employees will work on their return, so that they can decide on the best approach for them – and will be responsible for paying their wages while in work.
From August, the level of government grant provided through the job retention scheme will be slowly tapered to reflect that people will be returning to work.
For June and July the government will continue to pay 80% of people’s salaries but in the following months, businesses will be asked to contribute what the Government has described as a “modest share”.
The chancellor did confirm that individuals will continue to receive 80% of salary covering the time they are unable to work though.
Commenting on the scheme’s updates, Rishi Sunak says: “Our top priority has always been to support people, protect jobs and businesses through this crisis. The furlough and self-employment schemes have been a lifeline for millions of people and businesses.
“We stood behind Britain’s businesses and workers as we came into this crisis and we stand behind them as we come through the other side.”
He adds: “Now, as we begin to re-open our country and kickstart our economy, these schemes will adjust to ensure those who are able to work can do so, while remaining amongst the most generous in the world.”