Businesses must start paying towards the worker furlough scheme from August, Rishi Sunak has announced.
At Friday’s Downing Street briefing, the Chancellor set out the details of how employers will be expected to start paying the wages of furloughed workers.
Starting in August, employers will be asked to pick up National Insurance and pension contributions for employees.
The government is currently paying 80 per cent of workers’ salaries up to £2,500 a month for 8.4 million workers through its furlough scheme.
This will continue through June and July but, in the following months, businesses are going to be asked to contribute a share.
From September, the Government will reduce the amount it pays workers to 70 per cent, capped at £2,190, while employers pick up the extra 10 per cent.
In October the Government will reduce their subsidy to 60 per cent of wages up to a cap of £1,875 while employers pick up the extra 20 per cent.
After October, the scheme will close, Mr Sunak said.
Bosses will also be able to bring furloughed employees part time from July 1 – a month earlier than previously announced.
Employers will be responsible for paying their employees’ wages while in work and it will be up to them to decide the hours and shift patterns.
The Chancellor said: “Our top priority has always been to support people, protect jobs and businesses through this crisis. The furlough and self-employment schemes have been a lifeline for millions of people and businesses.
“We stood behind Britain’s businesses and workers as we came into this crisis and we stand behind them as we come through the other side.
“Now, as we begin to re-open our country and kickstart our economy, these schemes will adjust to ensure those who are able to work can do so, while remaining amongst the most generous in the world.”
Employers will be required to submit data on the usual hours an employee would be expected to work in a claim period and actual hours worked.
Employees who believe they are not getting their 80 per cent share can report any concerns to the HMRC fraud hotline.
The Chancellor also revealed an extension to the self-employment support scheme so that workers can claim a second and final grant worth 70 per cent of their average monthly trading profits and capped at £6,570 in total.