MAJOR changes to the furlough scheme are to come this week.

Employers across the UK have until Friday to submit claims for furloughed staff for periods ending on or before June 30.

The UK Government introduced new rules at the start of the month, allowing furloughed employees back to work for any amount of time or shift pattern.

Employers would pay the wages for those days, with the UK Government still pay the 80% grant – up to a cap of £2500 per month – on the days not worked.

But from Saturday, August 1, more major changes are to come into effect. 

What are the changes?

From Saturday, the level of grant will be reduced each month until the scheme ends on October 31.

Glasgow Times: Chancellor Rishi SunakChancellor Rishi Sunak

What does this mean for employers?

From this date, employers will be required to start contributing more each month. 

They will also have to start paying National Insurance Contributions and pension contributions for the hours the employee is on furlough.

From September 1, employers will be made to contribute 10% towards the wage payments – which will be added on to 70% provided by the UK Government.

And From October 1, employers will have to contribute 20%, added on to 60% by the UK Government.

Full details can be found here.

What does this mean for furloughed staff?

The good news for you is that your wages will remain the same.

You will continue to receive 80% of your salary – but the difference is just the adjustment of what your employer pays, and what the state pays.

How many people are furloughed in Scotland?

According to figures published on July 15, nearly 900,000 people in Scotland have been helped by the furlough and self-employment support schemes.

UK government figures show that, up to the end of June, 736,500 Scots had been furloughed.

In addition, another 155,000 claims have been made to the scheme supporting self-employed workers during the lockdown period.

What is the new timetable?

Here is the new furlough timetable, as set out by the UK Government:

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What do the experts say?

Martin Lewis at the MoneySavingExpert website says there could be “serious consequence” of this timetable.

He said: “If your employer doesn't believe your role will be viable, if it needs to start paying for it, there's a chance that this escalation of employment costs for the employer could tip it over the edge in seeking it to make employees redundant. 

“We hope this won't happen, but there is a chance.”