Government Announces Furlough Applications Close On 30 June
The UK Government has laid out the plans for the furlough scheme going forward, which will end in October with the deadline for new applications on 30 June.
He also revealed that the self-employment income support scheme will be extended meaning those who are eligible will be able to apply for a second and final grant in August.
Chancellor Rishi Sunak said at today's briefing that employers will be expected to make a contribution towards employees' wages.
Meanwhile, self-employed people who are eligible can apply for a second grant to help ease financial pressure during the coronavirus pandemic, before going on to lay out the future plans for the furlough scheme.
As before, the self-employment income support scheme will pay out a grant worth 70 percent of a self-employed person's average monthly trading profits in a single instalment covering three months' worth of profits and capped at £6,570.
Under the new terms of the furlough scheme, the government will continue to pay towards furloughed staff's wages, but employers will be contributing after July.
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This means that the government will pay 80 percent of wages (up to a cap of £2,500), as well as employer National Insurance and pension contributions through June and July.
In August, the government will continue to pay 80 percent of wages (up to the £2,500 cap), but employers will pay their National Insurance and pension contributions.
In September, the government will pay 70 percent of wages up to a cap of £2,190. Employers will pay National Insurance and pension contributions and 10 percent of wages to make it up to 80 percent total up to the £2,500 cap.
Finally, in October, the government will pay 60 percent of wages up to a cap of £1,875. Employers will pay National Insurance and pension contributions and 20 percent of wages, again up to the same £2,500 cap.
Sunak said: "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.
"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."
Featured Image Credit: PA