Employer to contribute 25% towards furlough scheme from august

ssdkck

According to the mirror and times this is the contribution ?  I think all will be confirmed next week 

ToxicWomble

Sooner the better imo.
currently there is no pressure or incentive for employers to get back to business as usual as they are quite happy with the government picking up their wage bill 

bradders1983

25% of the 80% or 25% of the 100% salary?

ssdkck

bradders1983 said:

25% of the 80% or 25% of the 100% salary?

25% of the 80%. But yet to be confirmed by the chancellor! 

lbowes20

Good news hopefully now a gradual return to work testing new safety measures and a step towards the new normal

bradders1983

ssdkck said:

bradders1983 said:

25% of the 80% or 25% of the 100% salary?

25% of the 80%. But yet to be confirmed by the chancellor! 

20% of salary then. Shame it wasnt a bit more.

Grumpy_chap

There is nothing announced on this yet, and I doubt a significant announcement will be made until the next working day, i.e. Tuesday.  Everything else is speculation - another news article I read said employers would need to contribute 30%.  What we do know is that the change is not until after July.

Maybe it should be that employees get 100% and the scheme can only be used if employers top up whatever proportion the Government don't pay (on a reducing basis) and staff can work in the proportion that the company is paying.

The sooner they reduce the cost of the scheme, and the other coronavirus schemes the better.  The longer the schemes operate, the more people / companies find ways to abuse them and use for unintended purposes.  All we know so far is that there is a magic money tree and Jeremy told Boris where it is.

ToxicWomble

The longer this goes on, the more I think there is a lot more that we aren’t being told.
Lockdown was always about protecting the NHS - yet according to the chart shown on today’s briefing, only 35% of ventilator beds have been used - and that was at the peak.
Death rate whilst high in numbers is small in % terms and yet they insist on following this course of action that will destroy the economy and people’s lives for years to come.
I suspect the death rate will be much higher due to people not receiving the medical care they deserve for other ailments.
Its all very fishy 

daveyjp

ToxicWomble said:

Sooner the better imo.
currently there is no pressure or incentive for employers to get back to business as usual as they are quite happy with the government picking up their wage bill 

No pressure, apart from finding money for all the other costs that still have to be paid when you run a business, but aren't earning an income.

Grumpy_chap

OK, so nothing has been formally announced by the Government (I don't think), but this 25% employer cost was on the BBC 10 o'clock news last night.

It kind of makes sense.  Furlough is for employees not working, they currently get 80% of salary from Government and the company can top up the remaining 20%.  That rules stays until the end of July.  It has been previously announced that furlough scheme will end totally with the last month being October.

There really is a need to get all businesses back up and running and that means managers, employees, unions all working to find ways of getting things back 'on the road' while also balancing the social distancing requirements etc.  There have been some examples where the comments have been to find every excuse not to return to functioning business and the Government can just keep paying, which is obviously unsustainable in the long term.

So, the idea, if it is confirmed that companies have to pay 25% of the furlough from August makes sense.  It would then be logical that the company contribution increases to 50% September, and 75% October, and 100% (i.e. end of Government support) from November onwards.

Somehow this furlough scheme does need to end, especially as it is now being abused by some employers.  That does not preclude the Government from providing very targeted support to specific sectors if there are areas that continue to have impacts that are not across business in general.

daveyjp

How is it being abused?