Later this week Rishi Sunak is expected to announce further changes to the furlough scheme. As well as the scheme being made more flexible with part time working allowed (as a means to get the economy back up and running), there is set to be a ban on new workers joining the 8 million currently on the scheme. This ‘stop’ on firms furloughing more staff comes as the Bank of England says that the economy is “nudging up from the floor” and that the worst may be over.
Firms are likely to be banned from furloughing further staff from the end of July 2020 although this date has yet to be confirmed. The cut-off point apparently stems from fears that some employers may try to play the system with part time working attempting to furlough millions more workers.
Companies are also expected to pay 20% of salaries and NI from the end of July 2020 with the furlough scheme having been extended until the end of October 2020.
Employers and employees are advised to keep an eye out for this latest announcement and make any necessary plans accordingly.
On a further note Rishi Sunak is also said to be weighing up whether to axe a crucial self-employment support programme (the self-employment income support scheme). A decision is expected to be made within days.