Coronavirus Job Retention Scheme (furlough scheme)
The Coronavirus Job Retention Scheme (furlough scheme) has been extended until 30 September 2021 and the level of grant available to employers under the scheme will stay the same until 30 June 2021.
1. Changes to the level of grant from 1 July 2021
From 1 July 2021, the level of grant will be reduced and you will be asked to contribute towards the cost of your furloughed employees’ wages. To be eligible for the grant you must continue to pay your furloughed employees 80% of their wages, up to a cap of £2,500 per month for the time they spend on furlough.
The table below shows the level of government contribution available in the coming months, the required employer contribution and the amount that the employee receives per month where the employee is furloughed 100% of the time.
Wage caps are proportional to the hours not worked.
| May | June | July | August | September | |
| Government contribution: wages for hours not worked | 80% up to £2,500 | 80% up to £2,500 | 70% up to £2,187.50 | 60% up to £1,875 | 60% up to £1,875 |
| Employer contribution: employer National Insurance contributions and pension contributions | Yes | Yes | Yes | Yes | Yes |
| Employer contribution wages for hours not worked | No | No | 10% up to £312.50 | 20% up to £625 | 20% up to £625 |
| For hours not worked employee receives | 80% up to £2,500 per month | 80% up to £2,500 per month | 80% up to £2,500 per month | 80% up to £2,500 per month | 80% up to £2,500 per month |
You can continue to choose to top up your employees’ wages above the 80% total and £2,500 cap for the hours not worked at your own expense.
In other words, if you have started the long furlough from July onwards, the employer is going to have to meet some of the costs as the amount paid by the government will reduce.
If you have any queries about how you might be affected or how the scheme will operate from 1 July onwards, please do not hesitate to contact us.
