Please find below a summary of the Furloughed Scheme until October 2020, when the scheme is planned to finish.
From 1 August 2020, the level of grant will be reduced each month. To be eligible for the grant employers must pay furloughed employees 80% of their wages, up to a cap of £2,500 per month for the time they are being furloughed.
Wage caps are proportional to the hours not worked.
The timetable for changes to the scheme is set out below. Wage caps are proportional to the hours an employee is furloughed. For example, an employee is entitled to 60% of the £2,500 cap if they are placed on furlough for 60% of their usual hours:
- August: the government will pay 80% of wages up to a cap of £2,500 for the hours an employee is on furlough, and employers will pay ER NICs and pension contributions for the hours the employee is on furlough
- September: the government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80% of their wages, up to a cap of £2,500, for time they are furloughed
- October: the government will pay 60% of wages up to a cap of £1,875 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80% of their wages, up to a cap of £2,500, for time they are furloughed
Employers will continue to able to choose to top up employee wages above the 80% total and £2,500 cap for the hours not worked at their own expense if they wish. Employers will have to pay their employees for the hours worked.
If you have any queries relating to the scheme, BACDT members can email info@bacdt.org.uk and we will get back to you.