The UK's furlough scheme to be extended until September

Rishi Sunak, Chancellor of the Exchequer, will be announcing plans to extend the furlough scheme until the end of the month of September.

The UK's furlough scheme to be extended until September
Continue reading
Read the article

The UK government's furlough scheme allows workers to receive 80% of their salary. In addition to this, employers will be asked to make contributions from the end of June which will steadily increase in amount until the end of the scheme.

Government support for an additional 600,000 people

With PM Boris Johnson's roadmap out of lockdown announced just last week, the contribution offered by employers will increase in accordance with how things evolve.

As of July 1st, the amount covered by the government will decrease to 70%, with employers having to compensate by 10%. Following this, on August 1, the government's contribution to furlough will fall to 60% with employers providing 20% to make up the same amount.

In other good news, Chancellor Sunak is also expected to announced in his forthcoming budget that more than 600,000 people who made the switch to self-employment in the 2019-2020 fiscal year and who filed a tax return that year will be eligible to receive government aid.

'Whatever it takes to support the British people'

The Self-Employed Income Support Scheme will also allow self-employed workers to claim 80% of the amount of three months' trading profits for up to a maximum of £7,500 in total as of next month.

Finally, flexible furlough will continue to be allowed which would entail employees to be able to to return to work for any amount of time or shifts while still claiming for unworked hours.

Sunak said:

Our Covid support schemes have been a lifeline to millions, protecting jobs and incomes across the UK. There's now light at the end of the tunnel with a roadmap for reopening, so it's only right that we continue to help business and individuals through the challenging months ahead - and beyond.

Adding that:

First, we will continue doing whatever it takes to support the British people and businesses through this moment of crisis. Second, once we are on the way to recovery, we will need to begin fixing the public finances - and I want to be honest today about our plans to do that. And, third, in today's Budget we begin the work of building our future economy.