Employers to start paying part of furloughed workers' wages from September

The government has confirmed details of its extended furlough programme – with the state continuing to pay the full wages of employees until the end of August.

The plans were confirmed by chancellor Rishi Sunak at Downing Street’s 5pm daily briefing this afternoon.

Sunak (pictured) said employers will be responsible for paying staff’s National Insurance employer contributions and pension contributions from August.

But the government will continue to pay up to 80% of furloughed staff’s wages that month.

In September, employers will have to start paying 10% of the 80% figure which will rise to 20% the following month with the government paying the remainder.

Sunak said: "I believe that it is right in the final phase of this eight-month scheme to ask businesses to contribute alongside the taxpayer towards the wages of their staff."

The government also announced that employers will be able to bring back furloughed employees on a part-time basis from 1 July with the government making up staff’s wages to the 80% figure.

Sunak also put a deadline as to when companies will still be allowed to put staff on furlough – saying all employees must be registered with the scheme by 10 June.

Sunak also confirmed that the self-employment income scheme will be extended with applications opening in August for a second, and final, pay out.

This week, HMRC said one million employers had claimed £15bn for 8.4 million furloughed employees between 20 April and 24 May.

Earlier this month, the government confirmed it was extending its furlough scheme, which had been originally due to come to a close this month before being extended until 30 June, to the end of October.

The initiative, which sees the government pay 80% of people’s wages up to £2,500 a month, will have been up and running for eight months by that point.