• rradar

Changes to The Furlough Scheme From The Start of July



Employers need to be aware that on 1st July, there will be a change to the furlough scheme – the government contribution will reduce and the employer contribution for hours not worked will be introduced.


July

  • Government contribution: wages for hours not worked: 70% up to £2187.50 per month

  • Employer contribution: employer NI contribution and pension contributions: Yes

  • Employer contribution wages for hours not worked: 10% up to £312.50 per month

  • For hours not worked, employee receives: 80% up to £2,500 per month


August

  • Government contribution: wages for hours not worked: 60% up to £1875.00 per month

  • Employer contribution: employer NI contribution and pension contributions: Yes

  • Employer contribution wages for hours not worked: 20% up to £625.00 per month

  • For hours not worked, employee receives: 80% up to £2,500 per month


September

  • Government contribution: wages for hours not worked: 60% up to £1875.00 per month

  • Employer contribution: employer NI contribution and pension contributions: Yes

  • Employer contribution wages for hours not worked: 20% up to £625.00 per month

  • For hours not worked, employee receives: 80% up to £2,500 per month per month


At the end of September, the furlough scheme is planned to end, but as has been shown repeatedly during 2020 and 2021, nothing is certain and things may well change again.


Since the four-week delay in further relaxation of pandemic restrictions, certain businesses who had been planning to open on 21st June may well find that they need to continue keeping their staff on furlough – although this will now become more costly as the amount the government contributes reduces month on month. It may also now be necessary to consider redundancies in order to preserve the business, and employers will need to obtain expert legal advice on how to do this without ending up facing claims for unfair or wrongful dismissal.