Furlough rules changed today

Companies using the government’s coronavirus furlough scheme are now having to contribute to workers’ wages.

Since March, the Coronavirus Job Retention Scheme has paid 80% of the wages of workers placed on leave, up to a maximum of £2,500 a month.

But now that is going down to 70%, with the employer paying 10%.

The scheme is due to finish at the end of October and Chancellor Rishi Sunak has repeatedly ruled out an extension to it.

Last month, he said it was “wrong to keep people trapped” in a situation where there was no realistic prospect of them having a job to go back to.

From 1 September, the government will pay 70% of wages up to a cap of £2,187.50 a month. Employers are already paying employees’ pension contributions and National Insurance, but will now have to pay 10% of salaries as well.

In October, the government will pay 60% of wages up to a cap of £1,875. The employers’ share of the bill will then go up to 20% of wages.