Furlough Scheme and Self-Employed Income Support Schemes – Update 29th May 2020 

29th May 2020

The Chancellor, Rishi Sunak, has today (29th May 2020) announced changes to the employee Furlough Scheme and the Self-Employed Income Support Scheme. 

The changes are as follows: – 


Furlough Scheme 

The scheme, which has been contributing towards employee’s salaries/national insurance/auto-enrolment pension contributions since March 2020, will now see employers contributing towards employee’s furlough pay from 1st August 2020. 

The scheme will remain unchanged during June and July 2020 with the Government covering 80% of employee’s salary plus national insurance and auto-enrolment pension contributions.  There will be no employer contribution during these months.  Employers can however continue to ‘top-up’ employee’s wages to 100% of normal salary if they wish. 

From 1st August 2020, the Government will contribute 80% of the employee’s salary only. Employers are then required to cover the employer national insurance and auto-enrolment pension contributions.  The Chancellor estimated that this equates to around 5% of the contributions that the Government are currently covering. 

From 1st September 2020, the Government contribution to employee’s salary drops down to 70% with the employer then covering the balance of 10% so that the employee continues to receive the 80% furlough pay.  The maximum Government furlough contribution drops to £2,187.50 in September. 

From 1st October 2020, the Government contribution to employee’s salary drops down to 60% with the employer then covering the balance of 20% so that the employee continues to receive the 80% furlough pay.  The maximum Government furlough contribution drops to £1,875.00 for October. 

This scheme will then close at the end of October 2020. 


New Flexible Furlough Scheme 

From 1st July 2020, a new fully flexible furlough scheme will be introduced to allow employees to return to work on a part-time basis whilst still receiving some furlough pay. 

For example, an employee can return to work for 2 days per week and receive their normal pay for those worked days.  For the other 5 days in the week, they can receive furlough pay based on the rules outlined above. 

A very important note is that the furlough schemes will be closed to new entrants from 30th June 2020. 

To therefore be eligible, employees must have been furloughed before 10th June 2020 to be eligible for furlough. 


Self Employed Income Support Scheme 

The current scheme will now be extended to cover JuneJuly and August 2020.  The claim amount will reduce to cover 70% of average profits up to a maximum claim of £6,570.  

If you have not yet made your claim for the current grant you must do so by 13th July or you will lose it. 

The claim will be available in August 2020 

There will be no changes or extensions to this scheme.