Chancellor outlines next steps for furloughed workers and support for self-employed

Cabinet Reshuffle

Chancellor Rishi Sunak has outlined the next steps for furloughed workers across the country.

He also confirmed that the government’s Self-Employment Income Support Scheme will be extended, a move with an aim to give more security to individuals whose livelihoods are adversely affected by coronavirus in the coming months.

Those eligible for self-employment support will be able to claim a second and final grant capped at £6,570.

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This announcement came alongside flexibility to bring furloughed employees back part time in July, while requiring employers to contribute to furloughed salaries from August.

So far, the CJRS has helped 1 million employers across the UK furlough 8.4m jobs.

The new announcement means that from July 1, businesses will be given the flexibility to bring furloughed employees back part time.

This is a month earlier than previously announced to help support people back to work. Individual firms will decide the hours and shift patterns their employees will work on their return, so that they can decide on the best approach for them – and will be responsible for paying their wages while in work.

From August, the level of government grant provided through the job retention scheme will be slowly tapered to reflect that people will be returning to work.

For June and July the government will continue to pay 80% of people’s salaries but in the following months, businesses will be asked to contribute what the Government has described as a “modest share.”

It did confirm that individuals will continue to receive 80% of salary covering the time they are unable to work though.

Commenting, Rishi Sunak 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.”

Adding: “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.”

Tags : employmentfurlough
Alex Douglas

The author Alex Douglas

1 Comment

  1. Mr Sinai has ignored those of us that was employed and self employed during the 3 year period he has given. Self employed since January 2019, was employed for 16 months prior to that. September 2017 to January 2019. Before that was self employed for at least 10 years. Because my employed earnings were higher than my self employed I do not qualify. I was off work for 8 weeks because my wife has some ailments that leave her vulnerable to covid 19. Had to go back to work because of bills mounting up. There are thousands in the same situation and have received no help. When the taxes increase to pay for all of this will we be exempt? Don’t think so. It’s an easy way to cut the costs by setting these rules to qualify as we can’t go on either scheme.

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