Furloughed staff will be allowed back part time but employers will have to cover 20 per cent of wages

Posted by Carolina Plugaru on

UK Cancellor Rishi Sunak

(Source: Car Dealer Magazine)

The chancellor Rishi Sunak will today announce plans to allow furloughed staff back to work part time – but bosses will have to contribute 20 per cent towards their pay.

National insurance and pension contributions will also have to be covered by the employer, reports The Times. Treasury sources did not deny the news.

Sunak is due to announce his plans at the Downing Street press conference at 5pm.

He will tweak the Coronavirus Jobs Retention Scheme from August which currently sees the government cover 80 per cent of staff’s pay up to £2,500 a month up to July 31.

Staff will be allowed back part time for as many hours as companies need – but the chancellor is expected to shut the scheme to new entrants.

There are currently 8.4m workers on the furlough scheme with one million businesses taking advantage of the subsidy.

So far £15bn has been claimed by companies.

There have been concerns that a dramatic change to the scheme at the end of July would be a cliff-edge ending for employers and many staff currently on furlough would be made redundant.

Read more on Car Dealer Magazine

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