Chancellor Rishi Sunak has announced changes to the government’s coronavirus support schemes, including part time working and a tapered employers’ contribution, and a second grant payment for the self-employed. From 1 July, under the Coronavirus Job Retention Scheme, businesses will be given the flexibility to bring furloughed employees back part time, a month earlier than previously announced.

However, claims from July onwards will be restricted to employers currently using the scheme and previously furloughed employees. The scheme will close to new entrants on 30 June, with the last three-week furloughs before that point commencing on 10 June.

Individual firms will decide the hours and shift patterns their employees will work on their return, and will be responsible for paying their wages while in work.

From August 2020, the level of government grant provided through the job retention scheme will be tapered, with employers’ contributions increasing, to reflect that people will be returning to work.

In June and July, the government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance (NICS) and pension contributions. Employers are not required to pay anything.

In August, government payments remain as before, but employers will be required to pay employer NICS and pension contributions. Government analysis indicates that for the average claim, this represents 5% of the gross employment costs the employer would have incurred had the employee not been furloughed.

In September, the government’s contribution to furlough wages will fall to 70%, up to a cap of £2,187.50. Employers will pay employers NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500.

In October, the government furlough contribution falls to 60% of wages up to a cap of £1,875. Employers will pay employer NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500.

Chancellor Rishi Sunak said: ‘Employers will be required to submit data on the usual hours an employee would be expected to work in a claim period and actual hours worked.

‘Employees who believe they are not getting their 80% share can also report any concerns to the HMRC fraud hotline. HMRC will not hesitate to take action against those found to be abusing the scheme.’

Alongside the furlough scheme, those eligible under the self-employment income support scheme (SEISS), which has so far seen 2.3m claims worth £6.8bn, will be able to claim a second and final grant in August.

The grant will be worth 70% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £6,570 in total.

Individuals can continue to apply for the first SEISS grant until 13 July. Applications for the second grant will open in August.

The eligibility criteria are the same for both grants, and individuals will need to confirm that their business has been adversely affected by coronavirus.

An individual does not need to have claimed the first grant to receive the second grant, for example in circumstances where they may only have been adversely affected by Covid-19 in this later phase. Further guidance on the second grant will be published on 12 June.