Changes to Coronavirus Job Retention Scheme (Furlough) from July 2021

As you will know by now, in the budget speech of 3rd March 2021, the government announced the extension of the current furlough scheme until September 2021. Further guidance has now been issued as to how the scheme will operate.

Firstly, for periods starting after 1^st May, you can claim furlough for any employee, provided they were on an FPS (full payment submission) return prior to March 2, 2021. Previously employees had to have been on an FPS prior to October 31, 2020.  You do not need to have previously claimed for an employee before 2 March 2021 to claim for furlough on or after 1^st May 2021.

Secondly, the government have announced the phasing out of furlough support from 1^st July 2021. Employees can still expect to receive 80% of their salaries, subject to the £2500 limit, but from July 2021 employers will be expected to make a contribution.

From 1 July 2021: The government will pay 70% of wages, up to a maximum of £2,187.50. The employer will be expected to make up a the remaining 10%

From 1 August 2021: The government will pay 60% of wages, up to a maximum of £1,875.00. The employer will be expected to make up the remaining 20%.

Subject to further confirmation, the furlough scheme is due to end on 1^st September 2021.

Disclaimer - All information in this post was correct at time of writing.