Three changes were announced:
1. From 1 July 2020, employers will be able to bring back previously furloughed employees part-time and still receive a grant for the time they are not working;
2. From 1 August 2020, employers will start contributing to the wage costs of furloughed staff; the required contribution will increase through September and October; and
3. The scheme will close to new entrants from 30 June.
Part time furloughing
Under the part-time furloughing arrangement, the government will continue to pay 80% of the wages for any normal hours the employee does not work up until the end of August. Employers will decide the hours and shift patterns; there will be no minimum time that staff have to be furloughed. Employers will be required to submit data on the usual hours an employee works and actual hours worked.
In June and July, the government will pay 80% of wages up to a cap of £2,500 as well as the NIC and pension contributions, for the hours the employee does not work. Employers will have to pay employees for the hours they work.
In August, the government will continue to pay 80% of wages up to a cap of £2,500 for the hours the employee does not work, but employers will have to cover the full cost of NIC and pension contrinbutions.
In September, the government will pay 70% of wages up to a cap of £2,187.50; and in October, this is further reduced to 60% of wages up to a cap of £1,875.
Closure to new entrants
From 30 June, employers will only be able to furlough employees who have been furloughed for a full three week period prior to 30 June.
Eligible people will be able to claim a second and final SEISS grant in August. This will be a taxable grant worth 70% of their average monthly trading profits for three months, paid out in a single payment and capped at £6,570 in total.
The eligibility criteria will be the same as the first grant.
As with the first grant (and contrary to what the government initially everybody), eligible individuals must make a claim themselves via gov.uk.
Claims for the first SEISS grant must be made no later than 13 July.
If you require any assistance or wish to discuss any of the issues discussed in this blog, please get in touch with us.