Upcoming changes to furlough scheme

monkey2guns

Hi, 

I'm furloughed at the moment. I will be furloughed until the scheme ends as the industry I work in won't be returning until social distancing is over. 

I've heard that there will be changes to the furlough scheme from August that will mean companies will have to put more money in themselves. Does anyone know what these changes are or when they will be announced? Google isn't helpful. If the furlough scheme changes mean more of a burden on employers, I am pretty sure I'll be made redundant so I'm keen to know a bit more so I can plan ahead.

sharpe106

Nobody knows yet. Plenty of rumours but no facts until the government announce it. 

jayzor

I think it’s safe to assume the government is going to expect some contribution from employers, especially as restrictions are slowly lifted. But exact details will need to be confirmed by the Government.

monkey2guns

jayzor said:

I think it’s safe to assume the government is going to expect some contribution from employers, especially as restrictions are slowly lifted. But exact details will need to be confirmed by the Government.

By contribution from employer, do you think they'll maybe pay 60% and force companies to pay another 20%-40% or something? 

Have they said when they will be confirming the changes?

bradders1983

I suspect that once these changes come in and employers have to stump up, anyone who can be made redundant at no or minimal cost will be made redundant, and only taken back on once that particular sector starts again.

sharpe106

No they have not said anything yet. To me it would make sense if the employer wants the employee back for 1 day a week they pay 20% and the government 60%, 2 days a weeks 40% each, 3 days a week employer 60% government 20% , 4 days a week 80% all employer, then when back to 5 days a week full pay. Not sure why they did not do that as soon as they wanted to get people back to work. 

jayzor

monkey2guns said:

jayzor said:

I think it’s safe to assume the government is going to expect some contribution from employers, especially as restrictions are slowly lifted. But exact details will need to be confirmed by the Government.

By contribution from employer, do you think they'll maybe pay 60% and force companies to pay another 20%-40% or something? 

Have they said when they will be confirming the changes?

It wouldn’t be right to really speculate on numbers, however i think it’s fair to say that as lockdown continues to be lifted, there will be the hope that a good proportion of companies who have staff furloughed, might be able to provide a limited amount of work initially as things get back up and running. This would allow a situation where people are getting paid a portion of their wage by the employer for the reduced work they carry out, with an additional amount being topped up by the government until the scheme comes to a complete end. By this point hopefully many businesses will of returned to a point where they are able to operate without government support. 

spiro

The rumours in the press are the employer will have to pay 20-30% of the employees wages plus the NI.
The amount the government pays will then continue to decrease over the coming months.
Also a company will not be allowed to be furloughed anyone from the end of the month.

Thrugelmir

monkey2guns said:

Hi, 

I'm furloughed at the moment. I will be furloughed until the scheme ends as the industry I work in won't be returning until social distancing is over. 

Can your employer stay solvent that long? Or operate in the same manner as they did in the past. Until there's actual developments the new norm may well be very different to the past. 

k12479

Latest 'rumour' from the FT, from August: 20% of Salary + NI Contributions + Pension Contributions

monkey2guns

Thrugelmir said:

monkey2guns said:

Hi, 

I'm furloughed at the moment. I will be furloughed until the scheme ends as the industry I work in won't be returning until social distancing is over. 

Can your employer stay solvent that long? Or operate in the same manner as they did in the past. Until there's actual developments the new norm may well be very different to the past. 

They could have stayed operating with the furlough scheme as it is now but I'm not sure what effect these upcoming changes will have. If it's the 20% + pension and NI contributions that they'll have to pay, then I would assume that I'll be made redundant as there is no way they would be able to afford to keep paying us that until the end of October.