BIG changes to the furlough scheme are to take place in October, marking big changes for employers and staff.
From Wednesday, the UK Government’s initiative will be altered, before formally closing on October 31.
Fears have been raised for thousands of workers who may lose their job when the support ends.
Here’s everything you need to know:
From Wednesday, October 1:
The UK Government’s contribution will drop from 70% to 60%, up to a cap of £1875 for the month.
Thankfully for staff, their salary will remain the same.
Instead, firms will have to contribute 20% of salaries – meaning people on furlough will still get their 80% salary.
From October 31:
The UK Government’s scheme will finish on October 31.
From this point, a new Jobs Support Scheme will be introduced.
That initiative is planned to help those in work who are doing fewer hours than usual because demand has fallen.
The state will contribute towards the wages of employees who are working fewer hours than normal.
Employers will continue to pay staff wages for the hours they work. But for the hours not worked, the UK Government and the employer will each pay one third of their equivalent salary.
It means that employees who can only work on shorter hours will still be paid two-thirds of the hours for the time they cannot work.
Employees must be working at least a third (33%) of their usual hours and will receive at least 77% of their normal pay.
After three months, the UK Government will consider whether to increase the minimum hours threshold.
The UK Government contribution will be capped at £697.92 per month.
Employers will be reimbursed in arrears for the UK Government contribution.
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