Picture Captial FM. See the story at https://www.capitalfm.com/news/tv-film/love-island/furlough-scheme-millions-claiming/

ICSM Business Information: everything you wanted to know about the furlough scheme but were afraid to ask (and yes, millionaire Love Island stars claimed furlough payments)

For freelancers, sole traders and many self-employed the Government’s cash hand-outs of grants and furlough payments have been elusive. But some very wealthy companies claimed the money despite being cash rich. It even included Love Island stars as reported by Capital FM. Whatever you think of the system it has saved many companies – but in the meantime here’s a few casts about the system.

In January 5.1 million workers were on furlough dropping to 3.4 million in April and falling further now.

Furlough changes on July 1st, 2021, with firms having to fork out 10% of their workers’ salaries with the Government (the tax payer) coughing up 70% and by September that changes to a 60% – 20% split. On October 1st it ends.

There is a limit of £2,500 per month for the highest earners.

Food and drink service, hotels, and air transport were some of the hardest-hit industries.

One third of employers were using the scheme in April.

The scheme has so far cost the government £66 billion pounds.

The scheme applies across the UK.

Controversy arose when wealthy firms claimed furlough cash for workers such as Love Island stars, the Hinduja brothers, Sit Jim Ratcliffe, Barrat Homes, Halfords and Wetherspoons.

Being furloughed does not affect your right to sick pay, annual leave, maternity, and redundancy payments.

Employers already have to pay pension and National Insurance contributions for their workers.

The Government is upping the costs to try and ween firms off the scheme at which point they have to decide to can the workers, go back into full production or go bust.

Experts believe unemployment will rise when it ends.

Inflation is also expected to rise due to the shortages and quantitative easing (printing money)

To claim furlough wages visit https://www.gov.uk/guidance/claim-for-wages-through-the-coronavirus-job-retention-scheme

About ICSM Credit

ICSM Credit has more than four decades of experience as a credit intelligence group whose members gain inside information about firms in trouble allowing them to avoid bad debts and rogue traders. To join costs less than a tank of fuel – while at the moment there’s a special free temporary membership offer during the Covid-19 crisis which gives access to free legal letters. ICSM also has an effective debt collecting service which has a global reach – ask for details from Paul.

For details about ICSM Credit call 0844 854 1850 or visit the website www.icsmcredit.com or email Ian at Ian.carrotte@icsmcredit.com on how to subscribe and to join the UK’s credit intelligence network to avoid bad debts and late payers. Follow ICSM Credit on FaceBook, Twitter and YouTube and Ian Carrotte on LinkedIn.

To keep up to date subscribe to the FREE ICSM Credit Newsletter to hear all the latest insolvency news and to see who has gone out of business click on the orange panel on the top left of the home page of the website www.icsmcredit.com or send an email to Ian.carrotte@icsmcredit.com

For details for the work of the journalist Harry Mottram visit www.harrymottram.co.uk