Government announces furlough scheme changes – what you need to know

by

The Chancellor Rishi Sunak has announced a series of changes to the Government's furlough scheme today, including workers being able to go back part-time from July. Here's what you need to know.

From Wednesday 1 July, businesses using the Government's furlough scheme will be able to bring furloughed employees back part-time. Even if they don't, the Government will continue to pay 80% of staff salaries during June and July.

Additionally, from August to October, while employees on furlough will continue to get 80% of their salary, who pays for that will change slightly. The amount the state pays will be reduced each month, with employers expected to contribute towards furloughed employees' employment costs. The scheme will come to an end on 31 October 2020, as previously announced.

Not sure what the furlough scheme is? See our Coronavirus Employees' Help guide for full information, including who's eligible for the scheme.

Watch: Martin's view

Before you get into the full detail below, here's MSE founder Martin Lewis's analysis of the announcement: