This afternoon’s Government press conference, led by Chancellor Rishi Sunak, focused on changes to the Job Retention Scheme, the new flexible furlough scheme and support for the self-employed:

Job Retention Scheme:

  • The scheme will close to new entrants on 30 June. It will continue in its current format in June and July, with no employer contribution
  • From August, the tax payer contribution will stay at 80% and employers will be asked to pay pension contributions and national insurance
  • From September, tax payers will pay 70% and employers will pay 10% of furloughed employees wages
  • From October, tax payers will pay 60% and employers will contribute 20%
    The scheme will then end at the end of October

New flexible furlough scheme:

  • A flexible furlough scheme will be in place from the 1st July
  • Employers will have full flexibility to decide the terms of their employees’ furlough. For example, employers can decide to bring employees into work two days a week, and then furlough them for three days a week

Self-employed income support scheme:

  • The self-employed can apply for a second and final grant in August
  • The grant will work in the same way as the first one, paid out in a single instalment, covering three months’ worth of average income
  • The value of the final grant will be 70% up to a total of £6,570