Earlier this year, Chancellor Rishi Sunak revealed a host of measures, labelled the Coronavirus Job Retention Scheme, aimed specifically at preventing widespread redundancies due to the fallout of the COVID-19 pandemic and the inevitable economic ramifications therein.
Measures included several grants and loans for struggling businesses, whilst the biggest change was the Government-backed furlough scheme, which agreed to pay 80% of worker wages, if companies agreed to keep staff on payroll through the UK’s lockdown.
In May, Sunak again addressed the nation, revealing that significant changes to the scheme would be made. In the briefing, Sunak outlined that, whilst furlough has been extended to a cut-off deadline of October, those who wish to continue utilising the Government-backed funds will have to contribute National Insurance and pension contributions in August and then pay 10% of wages from September – rising to 20% in October.
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