Job Retention Scheme ‘Furlough’ – changes from July

Purpose of note 

In this note you can find information related to the new Job Retention Scheme rules ‘furlough rules’ that will be applied from 1 July 2021

Furlough scheme 

In March 2020, Chancellor Rishi Sunak introduced the Furlough Scheme, a subsidy aimed at helping companies forced to lay off employees because of COVID-19. In September 2020, the UK Government replaced the initial scheme with another scheme the Job Retention Scheme. This scheme has gone through various iterations and extensions.

New level of grant from 1 July 2021

From 1st July 2021 the level of the grant will be reduced. The Government contribution will be reduced to 70% of the hours not worked (up to £2,187.50). Employers will need to cover at least 10% of the wages for hours not worked (up to £312.50). The Government support will decrease month by month until September 2021, which is the last month of the scheme. The scheme is currently scheduled to end 30th September 2021. 


You can read about the contributions here.

 May 21 June 21July 21August  21September 21
Government contribution 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: NICs and pension 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 received 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  

If you are an employer and, need help to manage the new scheme, feel free to contact us.

Purpose of note  In this note you can find informa […]

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