Furlough changes: Agencies and suppliers must pay some wages

UK's furlough scheme to be closed to new entrants reports

The government is paying 80% of workers' salaries up to £2,500 a month for some 8.4 million workers under its furlough scheme.

Additionally, the grant covers the associated Employer National Insurance contributions and pension contributions (up to the level of the minimum automatic enrolment employer pension contribution) on that subsidised furlough pay.

Earlier this month Sunak announced an extension of the scheme until the end of October, although with the caveat that employers will have to start contributing.

The chancellor will give an update today on how firms will be asked to contribute to employees' wages, following government concerns about the increasing costs of the furlough scheme and its likely impact on the United Kingdom public spending deficit.

The temporary scheme began from March 1, 2020, and it had originally been in place for four months, with the Government saying it may extend the scheme if necessary.

"We need to start identifying ways of moving them off the furlough scheme and back into work..."

During his statement to MPs, Mr Sunak said that among the changes would be employers being able to bring back furloughed employees on a part-time basis. "We need a furlough scheme that can be tapered down as people return to work".

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Shadow home secretary Nick Thomas-Symonds called on the government to provide more financial support to the self-employed and those who will have to self-isolate under the new NHS Test & Trace system.

Labour has called on the chancellor to bring forward more fundamental reforms by protecting subsidies for the industries hit hardest by coronavirus.

Rishi Sunak has won praise for implementing the two subsidy schemes covering employed and self-employed workers after studies showed that at least half the people covered would otherwise have been made redundant.

Statistics published on May 12 showed that the scheme has protected 7.5 million workers, and nearly one million businesses.

"How can it be right for the furloughed scheme to continue but this scheme to not?"

Next week from Monday to Thursday, Dermot Murnaghan will be hosting After the Pandemic: Our New World - a series of special live programmes about what our world will be like once the pandemic is over.

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