On 29 May 2020, the Chancellor announced changes to the Scheme.
Existing scheme closure and ‘flexible furlough’
-
The old Scheme will close to new entrants on 30 June.
-
From this point onwards, employers will only be able to furlough employees that they have furloughed for a full three week period prior to 30 June.
-
Employers who want to place new employees on furlough must do so by 10 June so the minimum 3 week period required can be achieved.
-
From 1 July, flexible furlough can be used.
-
For example, an employee who works 5 days a week can be brought back to work for 2 days a week. The employer will pay wages for those 2 days as normal. The Scheme will “continue to cover” the employee for the other 3 working days.
There will be no change to the level of financial assistance provided by the scheme during June and July.
-
From the start of August, employers will begin to contribute to furloughed employees’ wage costs on a phased basis.
-
The scheme will close at the end of October.
More guidance is expected on 12 June.