Important update on furlough, Self-Employed income support scheme EXTENDED- COVID-19 Business update 29/05/2020

This email is part of a regular update I send out to businesses in Scunthorpe. If you have not received this email directly from me please click here to subscribe to my COVID-19 Business newsletter. 

Latest update: 


Good evening,

Today the Chancellor provided more clarity on the new and more flexible furlough scheme, and a 3-month extension to the Self-Employed Income Support Scheme. I have provided a brief to the changes below. 

In light of the deadline and technicality for the "new (flexible) furlough" detailed below please can you share today's update with other employers and businesses to ensure that they will be able to furlough their employees from July onwards?



Employers will begin to contribute to furlough payments from August. From July, employees will be allowed to go back to work part-time whilst still on furlough, with the government continuing to subsidise the costs of time off work.
This is how government contributions will change month-by-month.

  • For June and July, the government will continue to pay 80% of furloughed wages up to a cap of £2,500 per month along with employer national insurance and pension contributions. (same as it is)
  • In August, the government will continue to pay 80% of wages up to a cap of £2,500, but employers will pay ER NICs and pension contributions.
  • In September, the government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee does not work. Employers will pay ER NICs, pension contributions and 10% of wages to make up 80% total up to a cap of £2,500.
  • In October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee does not work. Employers will pay ER NICs, pension contributions and 20% of wages to make up 80% total up to a cap of £2,500.
  • The cap on the furlough grant will be proportional to the hours not worked.


IMPORTANT DEADLINES: Making the best of "New Furlough" 

The "old furlough" will end on the 30th June, and the "new furlough" will only be applicable for employees who have previously been on furlough for the minimum 3 week period. 

In other words, if you want to make use of  "new furlough" (July onwards) for an employee they should be furloughed for at least once. If they have not been furloughed at any point during the entire duration of the crisis they will not be eligible for furlough from July onwards.  
The cut-off date for furloughing an employee who has yet to be furloughed is 10th June. 
You will also have until 30th June to make claims for the period before 30th June.


Having discussed this with colleagues I am pleased to see that the Chancellor also announced that self-employed people will be able to claim a second and final grant from the scheme in August.
It will be worth 70% of your average monthly trading profits for three months up to £6,750 in total, which will be paid as a lump sum.
DEADLINE TO APPLY FOR THE FIRST GRANT IS 13th JULY. Check eligibility and apply here.



Track and trace is essential to further unlocking our country. It is crucial that you know the protocol if there is an outbreak in their workplace, and know how to support those self-isolating. Guidance for employers and workers on this has been released here.
My advice: if your employee is eligible for the furlough scheme and can not work from home please consider putting them on furlough (3 weeks minimum) instead of SSP (2 weeks) if they have been asked to self-isolate. They will be off work for another week but will in return receive much more from the government.



HOURS RULES: Relaxation of the driving and duty limits have been extended to 14th June. Read more here.
WEBINARS: Here are some pre-recorded Webinars from the International Trade Department on how to help your business cope during the pandemic.
RETAIL AND COMMERCIAL LANDLORDS: A new code of practice is being developed to provide clarity on the current situation regarding tenancy payments and landlord responsibilities.
5G: Any business that feels like they can join the effort to adopt 5G quickly and safely can enter the 5G Create Competition to receive funding for their project.
MOT Tests: Updated guidance on how to carry out safely.       
CHARITIES: Updated financial support info.
CARE HOMES: Info on looking after people who lack mental capacity during Coronavirus pandemic
I have put together the resources sent by the Chancellor and the Treasury which you can find below:

Have a great weekend.

Take care,