Furlough has been a godsend for many businesses, but when the extension was announced in November, the model was changed slightly to put employee National Insurance and pension contributions on to the employer.
For some salons, the cost of paying this alone works out to be more than the grants given by the government.
There is a call to the Government to cover NI and pensions contributions under the extended furlough scheme from November, as in the original scheme earlier this year. A petition has been created which you can sign by clicking here.
Neil and Jayne Prigent of JAS Hair Group brought this to our attention earlier this week, after they raised this concern with their local press. Neil said:
Our NI and pension contributions are totaling more per month than the total government grants eligible to us. Over this lockdown period, we will be paying more back to the Government then in them supporting us financially.
The onus should not be on employers to make these contributions, giving them the option to opt out, leaving many without support. The Government must cover them.