Employers will have to pay into the government’s wage programme subsidy programme from August to help cover the cost of over eight million furloughed workers.
Rishi Sunak is expected tell employers how much they must contribute to the government’s wage subsidy programme on Friday (29 May), according to Reuters.
Reports suggest the Chancellor will inform businesses they must pay between 20% and 30% of the costs of the job retention scheme – with values of claims rising to 15 billion pounds so far.
Millions of jobs have been protected by the unique scheme, with furloughed employees receiving 80% of wages (up to 2,500 pounds per month) until the end of October.
The government has warned the programme is too costly to continue much further.
However, some employers are concerned they will struggle to find the funds to pay into the subsidy programme after taking a large economic hit during the pandemic; fearing more job losses could occur as a result.
Sunak is also expected to lay out new rules on how the scheme will allow part-time working after many employers campaigned for clarity.
The furlough scheme is also likely to be closed to new entrants, according to The Guardian.