How the furlough scheme will be rolled back

A dose of economic reality was administered to the public on Friday evening when Chancellor Rishi Sunak announced how the furlough scheme will be rolled back. But far from a short or sharp shock, Sunak unveiled a plan that scales the scheme back gradually over the next five months, as the government continues to pay 80 per cent of furloughed staff salaries, capped at £2,500, over June and July. Come August, however, employers will be asked to pay National Insurance and pension contributions, 5 per cent of total employment costs. In September, employer contributions will increase to 10 per cent of their employees’ salaries which will then rise to 20 per cent in October, before the scheme comes to a close at the end of the month.

Last time Sunak took to the podium at the daily press conference, he surprised everyone by extending the furlough scheme far more generously than was expected.