Furlough and the Self-Employed Income Support Scheme have protected many of us for the last 18 months – but all good things have to come to an end.
When the four-week delay to lockdown easing was announced moving Freedom Day from June 21 to July 19, many hoped there would also be a delay to the timeline surrounding the support schemes too.
After all, limits on numbers for sporting events, pubs and cinemas remain in place, while rules around masks won’t be lifted just yet.
However, furlough and SEISS were one aspect of life that faced “no changes”, despite the financial uncertainty surrounding a delay to restrictions easing.
So what’s in place now – and how long will it last?
The timeline
The SEISS and furlough scheme will end in September as expected, but support will dwindle during the summer months.
Currently, the Government is paying up to 70 percent of wages up to £2,187.50 a month as part of the Job Retention Scheme, with employers having to subsidise 10 per cent of wages for hours not worked up to £312.50 per month.
Contributions will fall again to 60 percent up to £1,875 in August and September with employers required to contribute 20% up to £625 per month.
After this, support will end all together for people on furlough and self-employed workers claiming the grant.
What else?
Hard-hit hospitality, leisure and retail companies have benefited significantly from the business rates holiday and the ban on commercial evictions – but the latter has now ceased.
Landlords now have the potential to take tenants to court again for not paying rent - despite many still being impacted by restrictions.
Firms who have paid no business rates until the end of June, now get a 67 percent discount with a £2million cap until the end of the financial year on April 6, 2022.
Sector leaders and trade union groups have called for full support measures to be extended, but the Government has decided against it.
Getting back to work
More than one million workers came off furlough in the four weeks between the end of April and the end of May, which coincided with the start of restrictions being lifted and non-essential retail, restaurants and pubs reopening.
New figures published show 2.4 million people moved off the scheme between the end of February and the end of May as businesses reopened.
This month’s ONS Business Impact of Covid-19 Survey show numbers of those still on furlough or flexi-furlough have fallen with estimates that between 1.3 and 1.9 million people still receiving support.
The number of employees on payroll is at its highest level since last April, business and consumer confidence have improved significantly and economic growth is outperforming expectations.
However, there is the possibility that as Furlough finishes completely, there will be a rise in unemployment as businesses who have struggled throughout the pandemic fail to re-establish themselves.
Can we help?
We are here to help with anything relating to furlough and SEISS and can advise you on how to manage your accounts as the country starts to get back to normal. Don’t hesitate to get in touch if you need financial guidance as you navigate the next few months.