The important furlough changes coming into effect on July 1.
Furlough was introduced in the spring of 2020 to stop people from being laid off by their employers during the lockdown.
The government paid 80% of the wages of people who couldn’t work, or whose employers could no longer afford to pay them – up to a monthly limit of £2,500. This is now changing:
From 1 July, the government will pay 70% of furloughed workers’ salaries, and employers will pay 10%.
In August and September, the government’s contribution will fall to 60% and employers will pay 20%.
It’s hoped that most coronavirus restrictions will end on 19 July, which should enable many businesses to fully reopen.
Government figures show that 11.5 million jobs have been supported by the furlough scheme since March 2020.
Boris Johnson and Chancellor Rishi Sunak both said recently that they do not want to extend furlough again.
“On the basis of what we can see now in the data… we don’t think we’ll need to change,” the Prime Minister said on 14 June.
If the data changes, and a large new wave of infections leads to another lockdown, the government will come under a lot of pressure to reconsider.
However, Cabinet Office Minister Michael Gove has said he is “open-minded” about extending furlough.
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