Furlough leave: Rishi Sunak expected to end new applications to the Scheme

The Chancellor, Rishi Sunak, is expected this week to announce further details of the changes to the Coronavirus Job Retention Scheme (the Scheme).

Due to take effect from 1 August 2020, the Chancellor will unveil details of the contributions the Government will require from employers going forwards. This could mean employers begin paying workers 20% of their salary, with the government contributions falling to 60%. This would apply to both full-time and part-time workers.

In addition to this, the Scheme is expected to be modified to permit part-time working of furloughed staff. However, to prevent companies from furloughing workers working full-time and bringing them back part-time, the Chancellor is also expected to reveal a cut-off date for when employees can be put on the Scheme. From this date, which is yet to be revealed, the Scheme is expected to be closed to new entrants.

Further details on the changes to the Scheme are expected to be released by the end of the week.

The Furlough Advice & Support Team at Edwin Coe will continue to monitor and report on the situation as it develops.

To review our previous Covid-19 updates, please click here.

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