Updates from 1 June

On Friday 29 May, Chancellor Rishi Sunak announced a “second and final grant” under the self-employed income support scheme, with applications to open in August.

The second grant will cover 70% of average monthly trading profits for three months, and will be capped at a total of £6,570.

Sunak also announced that the coronavirus job retention scheme will finish at the end of October. The scheme will also close to new entrants on 30 June, so it will only be available to those who were already using it.

From 1 July, employers will be able to agree any working arrangements with their previously furloughed employees, including part-time work. They will be responsible for paying employees’ wages while in work.

Support under the job retention scheme will then begin to taper off as follows:

  • August: The Government will pay 80% of employees’ wages up to £2,500, but employers will pay employer national insurance contributions (ER NICs) and pension contributions.
  • September: The Government will pay 70% of wages, up to £2,187.50. Employers will pay ER NICs and pension contributions, plus 10% of staff wages to make up the 80% total (up to a cap of £2,500).
  • October: The Government will pay 60% of wages up to a cap of £1,875. Employers will pay ER NICs and pension contributions, and 20% of wages to make up the 80% total (up to a cap of £2,500).
Author Name: 
Siobhan