Bosses will ‘have to start paying 25% of furloughed staff’s wages and workers will be able to return part-time’

As the government scales back the furlough scheme, from August employers will have to pay 25% of furloughed staff’s wages, according to reports.

The Times has reported that employers will be able to bring staff back part time, to work as many hours as they want a week, as lockdown is eased. The measures are expected to be officially announced this week.

Staff can be paid in full by their employer for the hours they work, and then continue to be covered by the furlough scheme for the hours they didn’t work.

Firms in all sectors will be expected to pay a quarter of the wages of all furloughed workers. They will also have to begin paying National Insurance contributions, although the government will cover pension contributions.

Many struggling firms are seeking to minimise costs ahead of a near-certain recession which means plans to ease the scheme has sparked fresh fears of job cuts.

The furlough scheme was announced in March as part of the measures to lessen the impact of coronavirus lockdown on businesses and employees. It saw furloughed staff receive 80% of their wages per month up to a maximum of £2,500.

Employers had the choice of making up the remaining 20%.

Over eight million workers have been furloughed so far, adding up to a third of the workforce in the private sector. It’s estimated that the scheme will cost as much as £80 billion.

The Chancellor has said that the country faced a recession ‘like no other we have seen before’. He added that a loss of jobs might happen in the next ‘days, weeks and months to come’.

Employees have been urged to return to work if they are unable to do their job remotely.