Sunak Slashes Employer Costs with Furlough Shake-Up as Lockdown Kicks In
Chancellor Rishi Sunak revealed a crucial furlough tweak during Thursday’s Commons session — the very day England’s new lockdown rules came into force.
Furlough Changes Hit UK-Wide
Sunak confirmed the updated furlough scheme applies across the entire UK. Employers will now only have to cover national insurance and pension contributions for staff unable to work. This is a big relief amid fresh restrictions hitting businesses hard.
From Full Pay to Pension Contributions
- The original furlough scheme ended in October, gradually reducing payouts to 60% of workers’ wages.
- Faced with new lockdowns and tiered restrictions, Sunak extended furlough into December.
- Now, employers are off the hook for wages, shouldering only NI and pension costs for furloughed staff.
With businesses braced for a tough winter, these moves aim to ease the financial burden as the UK battles its latest COVID wave.
