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Bosses will have to pay 25% of furloughed staff’s wages under plans to wind down scheme sparking job cut fears

EMPLOYERS will have to pay 25 percent of the wages of furloughed workers from August under plans to scale back the government scheme.

Under measures expected to be announced next week, employers would also be able to bring staff back to work for as many hours as they need as lockdown is eased, according to The Times.

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 Chancellor Rishi Sunak is expected to announce changes to the furlough scheme next week
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Chancellor Rishi Sunak is expected to announce changes to the furlough scheme next weekCredit: AFP or licensors

Staff will be paid full wages by their firm for any hours worked and will continue to be covered by the furlough scheme for the hours they don't work.

Firms in all sectors will be required to contribute a quarter of the wages of any furloughed workers.

They would also have to restart paying National Insurance, although the Government would cover pension contributions.

But plans to ease off the scheme sparked fears of fresh job cuts as struggling firms seek to minimise the increased costs ahead of a near-certain recession.

Chancellor Rishi Sunak announced the furlough scheme in March as part of measures to lessen the impact of the coronavirus lockdown on businesses and employees.

Under the scheme, furloughed staff receive 80 percent of their month salary up to £2,500.

It is up to employers whether they choose to make up the remaining 20 percent.

At least eight million workers - equivalent to a third of the workforce of the private sector - have been furloughed so far, and the Office for Budget Responsibility has estimated that the total cost of the scheme will be as much as £80billion.

The reports follow an announcement by the Chancellor earlier this month that the scheme, originally set to end in June, would be extended to October.

Mr Sunak said at the time that more changes would follow to partially shift costs from the taxpayer to businesses.

Speaking this week, he said the country faced a recession "like no other we have seen before".

Yesterday he added that the crises would spell the loss of jobs in the “days, weeks and months to come”.

The government has also begun taking tentative steps towards easing the lockdown.

Some shops could be allowed to open from June 1, while pupils in certain age groups are also expected to being returning to school.

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

 The UK has been in lockdown since March
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The UK has been in lockdown since MarchCredit: AFP or licensors


Chancellor Rishi Sunak extends furlough scheme with 80% pay for FOUR months until the end of October

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