New ‘flexi furlough’ scheme announced by UK government

29 May 2020

Chancellor Rishi Sunak announced this afternoon changes to the current Job Retention Scheme for workers and employers

The new more flexible scheme will allow businesses to bring back employees part time from 1 July – and not 1 August as was previously announced.

It will mean, for example, that an employer bringing back a full-time worker for two days a week would pay for the two days, with the furlough scheme paying 80% for the other three days.

Sunak also announced that employer contributions to furlough payments would be pushed back to September, rather than August which had originally been cited.

Under this new scheme, through June and July the current scheme will remain, with no contribution from employers. In August employers will be expected to pay National Insurance and pension contributions – about 5% of the average wage cost, he said.

In September employers will be expected to start contributing 10% on top of the NI and pension contributions, and in October this will rise to 20%. At the end of October, after eight months, the scheme will close.

This new ‘flexi furlough’ scheme also means that the old one will close and employers have until June 10th to enrol employees on the current scheme.

Related content

News |  People & Places

Furlough scheme extended to October

Chancellor Rishi Sunak confirmed today that the scheme would run into the autumn but that companies will be asked to ‘share the cost’ from August

News |  People & Places

The Drinks Trust launches End of Furlough Grant Scheme

The £250 grants are available to those experiencing immediate financial hardship as a result of the end of furlough.

News |  People & Places

Long read: Why has the covid-19 furlough scheme ignored tronc payments?

Chancellor Rishi Sunak has eased lockdown pain with the JRS scheme, but tronc isn’t included – has coronavirus exposed a fragile system?