To enable part-time furloughing and help workers currently furloughed get back to work, claims from July onwards will be restricted to employers currently using the scheme and previously furloughed employees. However, workers must have been placed on the furlough scheme before 10 June.
While the scheme has been extended until October, the Government has confirmed parents on statutory maternity and paternity leave who return to work in the coming months after a long period of absence will be permitted to be furloughed.
However, operators should note this will only apply where employers have previously furloughed employees.
Chancellor of the Exchequer Rishi Sunak said: “When I announced these changes to the furlough scheme last month (29 May), I was clear we wanted to do this in a fair way, that supports people back to work as the country begins to reopen following coronavirus.
“But for parents returning from leave, their circumstances has meant they are still in need of support and I’m pleased they will be able to receive the financial assistance they and their family will need.”
Further details of this change will be included in updated guidance published on Friday 12 June.
Last month, Sunak announced employers will have to start making payments towards the furlough scheme, starting with national insurance (NI) and pension contributions from August.
Following this, from September, employers will be asked to pay 10% of furlough wages with taxpayers contributing 70% and, from October, employers are to pay 20%, with taxpayers covering 60%.
The Coronavirus Job Retention Scheme (CJRS), which is commonly known as furlough, was first announced on Friday 20 March and currently means employers can claim for payments that cover 80% of furloughed employees’ wages, up to a maximum of £2,500 per month. Employers also have the option to top up staff payments.