A big change to the way the furlough scheme operates starts today.
The scheme – which has helped protect many jobs during the coronavirus pandemic – will no longer just see wages paid by the government.
The government had paid 80 per cent of a workers’ salary who had been asked not to work during the outbreak.
Now, companies will have to start contributing to wages.
They will have to pay at least 10 per cent of the salaries of the furloughed staff.
And there will be more changes next month as the government looks set to only pay 60 per cent of wages and ask employers to top up 20 per cent.
A Government spokesman explained who is still elible for the scheme.
They said: “From 1 September, the Government will pay 70% of wages up to a maximum cap of £2,187.50 for the hours the employee is on furlough.
“Employers will top up employees’ wages to ensure they receive 80% (up to £2,500). The caps are proportional to the hours not worked.
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“Unless you’re making a new claim for an employee who is a military reservist or is returning from statutory parental leave, you can only continue to claim through the scheme if:
- you have previously furloughed the employee for 3 consecutive weeks between March 1 and 30 June
- you submitted your claim before 31 July.”