Can someone explain what is happening with the furlough system past July?

[ForeverYoungIWantToBeForever]

I understand it has been extended to October. But past July do employers have to pay half of the furlough themselves?
If so, if gyms, restaurants, cinemas, pubs etc. are still forced shut, how will they afford this with not much, it any, income coming in?

The details are being released towards the end of the month but my understanding is that people will be able to go back in part time if their employer wants and the employer will pay for hours worked but the govt will top up to 80% subject to £2.5k limit as before if hours are less than 80% of full time hours.

Basically after July it will continue at 80% for everyone until October. And then after (I think they said August) there will be guidelines in place to make it more flexible. So if a work place is able to bring people back part time, the employer would pay part wage with the government etc.

(go back in or work from home as appropriate)

And what about the places still closed i.e. pubs?

@hayley264 It will continue at 80% made up by the government AND employers in a proportion yet to be released. So if an employer won't pay up (or they are not forced to in law) then the employee will get what the government proportion only.

@rosehip10 Thank you for clarifying, I thought that's what I said but I have be known to word things terribly

I understood that the hospitality industry is allowed to open up partially from beginning July. So an ft employee could go back pt and have 1/2 wages paid by employer and 1/2 by government.

So would it be possible to get full pay for someone working part time so 50 percent for employer and 50 percent government ?

I understood that the hospitality industry is allowed to open up partially from beginning July.

Only if the government considers it safe to do so.

So if an employer won't pay up (or they are not forced to in law) then the employee will get what the government proportion only.

Is that definitely correct?

I thought that the requirement for the employer to contribute was so ‘they had some skin in the game’ ie, they had to believe the jobs would be there at the end

I thought it was to avoid employers continuing to extend a fully government funded furlough when they know the job won’t exist at the end

With the best will in the world, If the employer hasn’t got money in the bank to pay then they can’t pay. They would only bring staff back to work part time if there is part time work to be done which brings in revenue for the company to cover a proportion of or all of the wages.
The furlough scheme is a hand out from the government to help companies in need to retain their staff and to help workers not to be without any income and unemployed.
It is a generous concept which cannot be maintained indefinitely, I suspect it has been used where not needed in cases where companies could have afforded the 80% wages themselves.
I really don’t see how it can be prolonged until October and don’t fully understand the extension rules and an concerned for the large number of companies and employees who are caught in this. The upshot will be that many employees will be made redundant with no prospect of finding new jobs and lots of companies will disappear. It is a very, very serious state of affairs, not limited to the UK and the government would seriously need to adjust unemployment law and payments. It would probably be cheaper for the government to do so but absolutely awful for millions of people.

I read it more that if someone went part time 50% for example.

They get paid as normal for the 50% the other 50 % of "time" would be furloughed at 80% with the government paying 60% if it and asking the employer to pay the 20%. as a minimum or 40% if they want to.

But like said the detial is to come.

www.gov.uk/government/news/chancellor-extends-furlough-scheme-until-october

So as I said upthread

Companies will be asked to contribute, but if a company can't afford to the government will have to make the full 80%. I expect companies will be means tested to make sure none are taking the piss.

Companies will be asked to contribute, but if a company can't afford to the government will have to make the full 80%

Is this what Sunak said. Hmm sounds a bit open to over use still.

He did say employees will get 80%. Actual details are not out yet, but it's clear pubs for example are unlikely to be able to cover anything.

Imo government will cover shortfalls to avoid redundancies as that's the point of the scheme.

Means testing for sure

If employer has no funds coming in they can’t make up the difference. Some might if they have reserves, but they can’t be forced.
The govt does not make it up to 80% when it goes down. But they’re planning to be back to normal in Sept, so won’t apply.
Pubs, restaurants, cafes etc.

All the schemes have been blanket schemes because testing is labour intensive and difficult to prove.

I think it will be the same for this. Sunak is pretty good at cutting off schemes where the unscrupulous can benefit.

Government hasn't said they won't make it up to 80%. Of course they will make concessions. They have said the employee will get 80% 80% is 80% wherever it comes from. They don't want redundancies so I'd say they will make it up

But yeah I would hope by September alot will be back to normal